TOYOTA BOSHOKU REPORT 20162015.4.1—2016.3.31
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1 TOYOTA BOSHOKU REPORT 2016
We aim to ensure sustainable growth with an eye on the future. The Toyota Boshoku group has started new initiatives with an eye on the future toward the achievement of the aspirations
stated in our vision. We aim to build a company that is trusted by all stakeholders and that can drive sustainable growth
through the pursuit of a strong and flexible business structure that is resilient to shifts in the external environment.
Corporate Philosophy / VISION
Aiming to achieve“our place in business”
Aiming to secure“our place in society”
VISIONLooking into the future,
we will create tomorrow’s automobile interior space
that will inspire our customers the world over.
Formulated 2050 Environmental Vision
The Toyota Boshoku group will work together
with all stakeholders with the aim of creating a
sustainable global environment where children
can lead their lives with a smile. P45
Evolving Toyota Boshoku’s Environmental Technology
The Toyota Boshoku group is actively promoting
the development of products that are
environmental friendly. Efforts are being made
to reduce the weight and size of components
along with maintaining and enhancing
comfort and performance. By doing so, we are
contributing to a reduction in CO2 emissions.
P47
Toward the formulation of a growth strategy
Toyota Boshoku has switched to a product
business oriented structure from a traditional
function-based structure, and we have begun
formulating a sustainable growth strategy in
line with this as we look to the future.
P9
Top Dialogue
Interviews with the Group Chiefs of the Product Business
Interviews with the Group Chiefs of the Regional Business
P16
P19
Tajimi Technical Centre proving ground
TOYOTA BOSHOKU REPORT 2016 2
We contribute to society by developing leading-edge technologies and manufacturing high-quality products.
TB Way
1. We meet challenges with courage and creativity, to realise our dreams.
2. We carry out kaizen continuously, aiming to achieve higher goals.
3. We practice genchi-genbutsu by going to the source to analyse
problems and find their root causes.
4. Once a decision is made, we move quickly to carry out the plan, with
passion and a sense of mission.
5. We seek to do our best, act professionally and take responsibility for our
actions
6. We respect the values of other cultures and accept differences, with an
open mind and a global perspective.
7. As a good corporate citizen, we do what is right and contribute to society.
8. We respect the individual and use teamwork to produce the best result.
(1) A company that persists in proposing excellent mobility for customers throughout the world.1) Readily provide products tailored to the various lifestyles of respective regions through innovative technologies that are
unique to the Toyota Boshoku group and consistent in its manufacturing quality.2) Have an established presence in terms of unique value by creating innovative, next-generation products that exceed
customers’ expectations.3) Strive to provide customers with environmentally friendly and enriched lifestyles by boldly pursuing inroads into new businesses.
(2) A trusted company that grows together with all stakeholders.1) Resourceful and multi-talented human resources drawn by the appeal of the Toyota Boshoku group, with members
working enthusiastically in all regions worldwide.2) Recognised as a company that is trusted and indispensable to society, customers, business partners and shareholders.3) Capable of carrying out unequalled monozukuri in every region of the world while carrying out kaizen continuously.
VISION
Our place in business
Our place in society
Philosophy
Based on the Principles of Toyoda, which encapsulate the ideas of founder Sakichi Toyoda, the Toyota Boshoku group
formulated our corporate philosophy for maintaining the trust of all stakeholders and our vision, which articulates the type of
company we aspire to become. With the corporate philosophy and vision serving as a framework, we have established clear
policies, targets and plans for our business, social and environmental activities. We have also formulated the TB Way and the
Toyota Boshoku group code of conduct to ensure that all company members share common values and behaviour.
豊田 佐吉
1. Society The Company will promote corporate growth while fulfilling the following responsibilities as a good corporate citizen:
1) Maintain ethical values, ensuring that our corporate activities are fair and transparent;
2) Supply safe products that do not harm the environment; Promote corporate activities that help protect the global environment;
3) Create a better society as a member of our local communities.
2. Customers The Company will develop innovative technologies and products to deliver quality that satisfies our customers.
3. Shareholders The Company will promote innovative management policies that ensure future corporate growth and the trust of our shareholders.
4. Employees The Company will build and maintain positive labour-management relations, respect the individuality of its employees and create
safe and comfortable workplaces.
5. Business partners The Company will promote open and mutually beneficial relationships with its business partners in pursuit of long-term growth
and prosperity.
Corporate Philosophy
Always be faithful to your duties, thereby contributing to society and to the
overall good.
Be at the vanguard of the times through endless creativity, inquisitiveness and
pursuit of improvement.
Always be practical and robust, and avoid extravagant and frivolous practice.
Always strive to build a homelike atmosphere at work, one that is warm and
friendly.
Be reverent, and show gratitude for things great and small in thought and deed.
Principles of Toyoda
Sakichi Toyoda
Handing down the spirit of Sakichi Toyoda (established in 1935)
Toyota Boshoku group’s Aspirations
3 TOYOTA BOSHOKU REPORT 2016
Our three business domains provide the ultimate mobility
life for customers around the world.
Business Domains
● Seats
● Interior & Exterior
● Unit Components
The Toyota Boshoku group delivers excellent quality and
new value that contributes to the environment, safety
and comfort of interior space in the three domains of
seats, interior & exterior, and unit components.
■ New category
Aircraft seats
Railway seats(Photo provided by East Japan Railway Company)
Seat frames■ Automobile seats
The Toyota Boshoku group develops seats that elicit the maximum potential of each car, seats that make the vehicle easier to drive and that ensure the ultimate in comfort and pleasure. We aim to develop seats that provide comfort and safety for everyone in mobility in any setting around the world.
Seat Business
Interview with the Group Chief of the Seat Business Group
P16
Sports seats (For automobile racing)
TOYOTA BOSHOKU REPORT 2016 4
■ Electric Powertrain-related Products
Motor core constituent parts (For hybrid system)
Intake manifolds (For horizontally opposed engine)
Cylinder head covers
■ Air Induction Systems Products
Air cleanersAir induction systems
Stack manifolds
■ Fuel Cell-related Products
SeparatorsAir filters
■ Filters
Cabin air filtersOil filters
In order to develop cars that ensure smooth and stable driving under any tough conditions, the Toyota Boshoku group manufactures products that maximise engine performance while contributing to realising a clean and comfortable vehicle interior space through our outstanding filtration technology.
Unit Components Business
Interview with the Group Chief of the Unit Components Business Group
P18
Fender linersBumpers
■ Exterior Components
Curtain-shield airbagsSeatbelt webbings
■ Textile Components
Electric sunshade systems
■ Interior Components
Instrument panels
Interior systemsDoor trims
IlluminationsHeadliners
Floor carpets
SilencersPackage trays
The Toyota Boshoku group strives to deliver automobile interior spaces in which people from every country and region of the world can create unforgettable moments with family, friends and other loved ones that will last a lifetime. Staying one step ahead of the times, we develop interiors that enrich users’ mobility life and ensure uncompromising comfort through total coordination of the automobile interior.
Interior & Exterior Business
Interview with the Group Chief of the Interior & Exterior Business Group
P17
Seat fabrics
Oil mist separators
5 TOYOTA BOSHOKU REPORT 2016
Production entities
Toyota Boshoku plantsProduction subsidiariesOther subsidiariesAffiliates
Global Mainstay Hub
Optimal global business operations
China RegionToyota Boshoku(China) Co., Ltd.
The AmericasRegion
Toyota BoshokuAmerica, Inc.
RM&CH
Europe &Africa RegionToyota Boshoku
Europe N.V.
Asia &Oceania Region
Toyota BoshokuAsia Co., Ltd.
Japan RegionToyota Boshoku
Corporation
■ One Hub per Region
Along with close coordination between the RM&CH and the Global
Mainstay Hub, RM&CH work together with production entities in
respective regions as part of the “one hub per region” structure.
To meet customer expectations in the various countries and regions of the world, we are establishing development and manufacturing bases globally.
Profile
Location 1-1 Toyoda-cho, Kariya-shi, Aichi 448-8651, Japan
Capital 8.4 billion yen
Founded 1918
Established 1950
■ Business Overview
■ Global NetworkChina
Asia & Oceania
More than 50,000 motivated Toyota Boshoku group members maximise the diversity of members in the different countries and regions
of the world and work to ensure unparalleled manufacturing operations to contribute to our customers and local communities.
Japan
The Americas
Europe & Africa
Business development
Number of sites
27 countries and regions
1,415.7billion yen
113 companies
Net sales
■ Regional Management & Collaboration Hubs (RM&CH)● Main entities
(Ended March 31, 2016)
Interviews with the Group Chiefs of the Regional Business Units P19-22
TOYOTA BOSHOKU AMERICA
TOYOTA BOSHOKU (CHINA)
TOYOTA BOSHOKU ASIA TOYOTA BOSHOKUTOYOTA BOSHOKU EUROPE
TOYOTA BOSHOKU REPORT 2016 6
■ Total amount of CO2 emissions and basic unit [Toyota Boshoku group](Total amount / Unit: thousand t-CO2) (Basic unit / Unit: t-CO2 / 100 million yen)400
300
200
100
0
20
15
10
5
02011 2012 2013 2014 (FY)2015
259.7 278.1 292.8288.6
16.3 16.2 16.016.5 15.8 15.9 16.3
14.2
288.916.1
13.2
■ Water consumption results [Toyota Boshoku group](Consumption / Unit: thousand m³) (Basic unit / Unit: thousand m³ / 100 million yen)4,000
3,000
2,000
1,000
0
0.20
0.15
0.10
0.05
02011 2012 2013 2014 (FY)
1,8811,988 1,946 1,885
2015
1,8950.09
0.120.11 0.11
0.10
Total amount of CO2 emissionsToyota Boshoku
Toyota Boshoku group basic unit (target)
Japan affiliates The Americas region
Asia & Oceania region China region Europe & Africa region
Toyota Boshoku group basic unit (result)
Toyota Boshoku
Basic unit
Japan affiliates The Americas region
Asia & Oceania region China region Europe & Africa region
Water consumption
(Billions of yen)1,500
1,250
1,000
750
500
250
02011 2012 2013 2015 (FY)
964.21,079.4
1,218.3
1,415.7
2014
1,305.5
(Billions of yen)1,500
1,250
1,000
750
500
250
02015 (FY)201320122011
572.3
142.4
250.1
50.9
621.9
176.5
278.5
60.3
661.4
214.2
322.7
86.3
726.2
316.4
357.2
96.5
2014
678.8
287.6
312.9
101.8
(Billions of yen)60
50
40
30
20
10
02011 2012 2013 2015 (FY)
20.9 25.3 28.8
59.4
2014
32.3
(Billions of yen) (%)
20
15
10
5
0
2.0
1.5
1.0
0.5
0
(%)
6.0
5.0
4.0
3.0
2.0
1.0
02011 2012 2013 2014 (FY)
0.3
1.5
1.0
0.4
3.2
15.712.6
5.2
Net income to net salesOperating income to net sales
2015
0.33.9
2.2 2.3 2.4 2.5
4.2
Europe & Africa Asia & Oceania The Americas Japan
*Asia & Oceania includes China.*Adjusted amounts for transactions among regions are not included.
Fiscal 2015 Highlights
Financial Highlights
Environmental Highlights
Net sales
Operating income / Operating income to net sales
Net sales by geographic region
Profit attributable to owners of parent / Net income to net sales
Total amount of CO2 emissions and basic unit [Toyota Boshoku group] Water consumption results [Toyota Boshoku group]
The assurance symbol is presented for data disclosed on CO2 emissions that has received an independent assurance (see page 60 for details).
7 TOYOTA BOSHOKU REPORT 2016
Chairman
Shuhei Toyoda
A Message from the Chairman and the President
From April 2016, the Toyota Boshoku group implemented major
changes to its management structure and launched a new
organisational and management structure with the aim of achieving
sustainable growth.
The market environment currently is likely to remain harsh amid
ongoing uncertainty and expected intensifying global competition.
Under these conditions, the Toyota Boshoku group has positioned
the two-year period from fiscal 2015 through fiscal 2016 as a
time for strengthening its corporate structure and the group is
working in unison to solidify our business footing and promote
structural reforms. Of particular note, from October 2015 we have
been determining and undertaking top-priority tasks that include
thoroughly strengthening our development capabilities and
production engineering and production capabilities. In fiscal 2016,
Toyota Boshoku plans to decisively complete these initiatives and is
establishing new strategies aimed at realising sustainable growth
under our new structure as we look toward the future of the Toyota
Boshoku group.
Regarding our environmental efforts, we formulated and began
executing our 2050 Environmental Vision. This vision articulates
our targets and the directions we are pursuing from a long-
term perspective as we strive for sustainable growth while firmly
responding to the demands of the international community.
On a different front, we will contribute to further enriching and
raising the quality of time people spend inside mobility interior spaces
as a company that persists in proposing an excellent mobility life for
customers throughout the world, which is one of the Toyota Boshoku
group’s aspirations.
Additionally, we will make our utmost efforts to create a trusted
company that grows together with all stakeholders based on our
corporate philosophy of promoting corporate growth while fulfilling
our responsibilities as a good corporate citizen. As we work toward
these objectives, each and every person will seriously consider the
tasks we must undertake and then move into action for the future of
the Toyota Boshoku group and our loyal stakeholders.
In the future as well, we ask for your ongoing support and
encouragement.
August 2016
PresidentChairman
Executive Vice President
Takeshi Numa
Executive Vice President
Takamichi Taki
Executive Vice President
Shuichi Koyama
Shuhei Toyoda
President
YoshimasaIshii
Yoshimasa Ishii
TOYOTA BOSHOKU REPORT 2016 8
9 ■ Top DialogueToyota Boshoku President Ishii welcomes Ms. Sakie Akiyama, CEO & Founder of Saki Corporation, for a dialogue on the ideal type of management for achieving sustainable growth and on various corporate social responsibility (CSR) initiatives.
15 ■ Interviews with the Group Chiefs of the Product Business and Regional Business GroupsAiming for Sustainable Growth through Growth Strategies Evolving around Products and Regions
16 ■ Product Business
19 ■ Regional Business
23 ■ Special ExtraMovie Theatre Seats Based on Toyota Boshoku’s Knowledge of Seat Development – Creating a Special Space with the Ultimate in Premium Seating
For the first time, Toyota Boshoku has engaged in creating movie theatre seats, handling all aspects of design and development, from material selection to the finished product.
24 ■ Social ActivitiesPromoting Corporate Growth While Fulfilling Our Responsibilities as a Good Corporate Citizen
45 ■ Environmental ActivitiesWorking toward Environmental Conservation in All Facets of Business
■ Formulated 2050 Environmental Vision
■ Special Feature:
Toyota Boshoku’s Environmental Technology Evolving with Automobiles
While maintaining and enhancing comfort and performance, Toyota Boshoku initiatives seek to reduce the weight and size of components, thus contributing to a
reduction in CO2 emissions.
61 ■ Financial Report
66 ■ Third-Party Comments regarding Toyota Boshoku Report 2016
Sections for which more detailed information can be found on our website are indicated with . Web
Top Dialogue
Strategies for Each Product Business
Strategies for Each Regional Business
Environmental
Activities
Special ExtraSocial A
ctivitiesFinancial Report
INDEX Table of Contents
Editorial PolicyToyota Boshoku Report 2016 is edited to provide easy-to-understand reports on various initiatives in aiming to become a truly global company. In this year, we are focusing on introducing the directions to which the Toyota Boshoku group should aspire and various strides toward our vision. We held a dialogue concerning the style of management for the future and the importance of CSR activities and received input from an outside management representative. Regarding the special features, we aimed to provide a clear understanding of the Toyota Boshoku group’s initiatives by introducing from various perspectives the challenges we face in realising the new Environmental Vision we have formulated. This report also includes third-party comments by an expert that evaluate the entire report, which will be reflected in producing next year’s report.
Scope of reportingThe information in this report applies to the Toyota Boshoku group in Japan and other regions throughout the world. However, the scope of reporting differs for each initiative.
Period covered by reportThis report contains performance data from April 1, 2015 to March 31, 2016. Some information on previous or later activities is also included.
Reference Guidelines∙ Japan’s Ministry of the Environment Environmental Reporting Guidelines (2012 Version)∙ Japan’s Ministry of the Environment Environmental Accounting Guidelines (2005 Version)∙ ISO 26000∙ Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 4
Cautionary statement with respect to forward-looking statementsThis report contains forecasts and expectations that relate to future plans and strategies in addition to the expected financial results of Toyota Boshoku Corporation and the Toyota Boshoku group. These statements are not based on actual results from the past.Rather, they are estimates based on assumptions and opinions that have been formed by the Company from the information available at the time of writing. They also involve risks and uncertainties relating to economic trends, the severe competition affecting the automobile industry and changes in global demand, taxation regulations, laws, systems, natural disasters and other matters. Accordingly, actual results may differ from the Company’s forecasts.
Numerical values of financial resultsNumerical values on financial results have been rounded off in this report.
9 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 10
In April 2016, the Toyota Boshoku group started off toward its next stage under a new management structure with
the aim of achieving sustainable growth. Here, Toyota Boshoku President Ishii welcomes Ms. Sakie Akiyama, CEO
& Founder of Saki Corporation, for a dialogue on the ideal type of management for achieving sustainable growth
and on various corporate social responsibility (CSR) initiatives.
President
Yoshimasa Ishii
Making a Further Leap Forward and Strengthening Competiveness under a New Structure for Sustainable Growth
Top
Dialogue
CEO & Founder, Saki Corporation
Sakie “Jodie” Akiyama
President’s Interview President Yoshimasa Ishii and CEO & Founder Sakie “Jodie” Akiyama
9 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 10
Top Dialogue
Sakie “Jodie” Akiyama
Ms. Sakie “Jodie” Akiyama established Saki Corporation in April 1994 and currently serves as its CEO & Founder. The company is a top global manufacturer in the field of industrial-use visual inspection robots. Guided by its corporate principle, “Challenging the creation of new value,” Saki Corporation undertakes its business based on its management priorities of “employee satisfaction,” “product quality” and “customer satisfaction” with the aim of securing the top position in the global market for its brand-name products and achieving long-term stable growth. In 2005, Ms. Akiyama won the “Courageous Management Award” Grand Prix presented by the Tokyo Chamber of Commerce and Industry. In 2006, she placed second in the Business leader category and third in the Overall category for the Women of the Year 2006 presented by Nikkei WOMAN magazine. Ms. Akiyama is currently a committee member of the Japanese government’s Industry-Academia-Government Collaborative Roundtable on Human Resources Development in Science and Technology.
VISION
Toyota Boshoku group’s Aspirations
A company that persists in proposing excellent mobility for customers throughout the world.Our place in business
A trusted company that grows together with all stakeholders.Our place in society
Initiatives and Achievements in Fiscal 2015 Akiyama What types of initiatives have you focused on during the one
year since becoming president?
Ishii First of all, I worked to understand various issues concerning
the Toyota Boshoku group by meeting with as many people as
possible both inside and outside the company to listen to their frank
opinions about issues they face and their awareness of problems.
These meetings reaffirmed my awareness of a number of issues,
one of which is that Toyota Boshoku is still not meeting customer
expectations. In response, I took steps to strengthen our corporate
structure and solidify our business footing. Among these measures, I
have focused on three points in particular as top-priority issues since
autumn 2015.
The first is to strengthen our development capabilities, production
engineering and production capabilities, which form the foundation
of a monozukuri (manufacturing) company. As part of these
efforts, we once more implemented a major overhaul of initiatives
undertaken to the present. For the approximately 1,000 items
we identified during this process, we clarified and systematised
matters that need to be undertaken at the executive, division
general manager and operational personnel levels. By successfully
completing each item, I am confident we can raise levels of customer
trust and further strengthen the fundamental competitiveness of our
manufacturing.
The second priority is to build a management information
infrastructure. Following the merger of three companies in 2004 that
formed the current Toyota Boshoku, we have focused on responding
to a wide range of projects and promoting the global expansion of
our production and development. At the same time, however, the
establishment of group-wide common systems and an information
infrastructure has failed to keep pace with our global business
expansion. Upon clarifying the ideal shape of our future business
operations and business management, we plan to accelerate efforts
to build an IT-based management foundation to speed-up decision-
making and raise business management capabilities that are
indispensable for global management.
Third, we will build systems such as personnel systems that will
enable the more than 50,000 members working globally at our
over 100 business entities to fully deploy their capabilities and
create a corporate culture that allows company members to work
energetically. Toyota Boshoku has already adopted a personnel
evaluation system to reward members who make outstanding efforts
and produce results. Also, we have created structures that encourage
diverse human resources at a variety of workplaces to decisively take
on challenges. We will continue to promote these three initiatives in
fiscal 2016 as well.
CEO Akiyama, with the passing of a year, where does your
company stand at this point in time?
11 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 12
Net sales by geographic region (Billions of yen)
1,415.7 billion yen
ConsolidatedNet Sales
Europe & Africa 6.6%
(YoY change) 5.2% decrease
FY2014 FY2015
101.8 96.5
96.5 billion yen
FY2014 FY2015
678.8 726.2
Japan 47.4%
(YoY change) 7.0% increase
726.2 billion yen
FY2014 FY2015
287.6 316.4
The Americas 22.1%
(YoY change) 10.0% increase
316.4 billion yen
FY2014 FY2015
312.9 357.2
Asia & Oceania 23.9%
(YoY change) 14.1% increase
357.2 billion yen
* Before elimination of intersegment sales in each region
Akiyama Saki Corporation is a venture company that we started from
the ground up guided by our management principle of “Challenging
the creation of new value.” Our foremost management theme is to
secure the highest levels of market recognition and customer trust.
To achieve this objective, we have worked to continually pinpoint
the latest needs and provide solutions in the form of technologies
and products. We have also consistently emphasised technology
development and capital investments even when our business
results turned sharply downward in the wake of the collapse of
Lehman Brothers in 2008. Thanks to this approach, the products
we developed back then have finally grown to become our
mainstay products.
Could you explain Toyota Boshoku’s business results for fiscal
2015?
Ishii Looking at our business results for fiscal 2015, consolidated
net sales increased 110.2 billion yen from the previous year to
reach an all-time high of 1,415.7 billion yen. Despite such income-
reducing factors as an increase in production preparation costs,
consolidated operating income increased 27.0 billion yen to 59.4
billion yen and ordinary income increased 15.0 billion yen to 56.1
billion yen. This was due to such income-increasing factors as the
impact of a rise in revenue and the implementation of rationalisation
measures. Nevertheless, profit attributable to owners of parent
decreased 1.3 billion yen to 3.9 billion yen due to the recording of
extraordinary losses that included the liquidation of businesses at
European subsidiaries.
By geographic region, in Europe, despite the implementation
of a host of profit structure reforms up to the present, some
of our businesses continued to encounter strong headwinds.
We considered drastic business restructuring and other measures
to raise profitability. Further, to avoid incurring even wider losses in
the future, we ultimately sold all our shares in three consolidated
subsidiaries, namely Boshoku Automotive Europe, Boshoku
Automotive Poland and Boshoku Automotive Czech. We also sold
a portion of the business handled by Toyota Boshoku Europe’s
Munich branch. At the same time, Toyota Boshoku established a
joint venture* with the buyer of the shares and will continue to carry
out a portion of the door trim business in its automotive interior
components business. I believe it is essential that we maintain
points of contact with Europe given that numerous regulations and
technologies in the automobile industry originate from Europe. Also,
from the perspective of improving our global competitiveness as
well, carrying out business with European automakers is essential.
With these factors in mind, we will continue to carry out the
automobile seat business and part of the door trim business, as
we have maintained a solid business footing for further raising our
future presence in Europe.
Turning to The Americas, our Japan-U.S. integrated profit structure
reform activities undertaken to the present are also yielding positive
results, as evidenced by the recording of profits in The Americas for
the first time in eight fiscal terms.
Defining Sustainable Growth Akiyama President Ishii, what are your ideas about the form of growth
you envision for the future?
Fiscal 2015 Amount of change
Net sales 1,415.7 110.2
Operating income 59.4 27.0
Ordinary income 56.1 15.0
Profit attributable to owners of parent 3.9 (1.3)
Results Summary [Consolidated] (Billions of yen)
*Joint venture company: Megatech Boshoku Europe (Czech Republic) Items produced: automotive interior components (natural fibre door trims), established in June 2016
11 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 12
Top Dialogue
Top Dialogue
Ishii In terms of growth, we would like to aim for sustainable
growth. We can achieve sustainable growth through efforts to raise
our competitiveness. This means realising growth supported by a
strong and flexible business structure that is resilient to shifts in the
external environment. Of course any extreme changes in the external
environment will inevitably have a huge impact on our business
results so we cannot always assume growth every year. Instead of
pursuing growth only in the form of business expansion, I would like
to maintain a long-term growth track attained by also improving our
competiveness and building a strong business structure.
Akiyama I agree with you. Saki Corporation’s mainstay products are
Automated Optical Inspection (AOI) systems used in electronic
components mounting processes. Our mission is to do whatever we
can to continually supply products and services that support our
customers’ business continuity and development. Saki Corporation
is a small enterprise, and as such, our business results tend to be
affected enormously by changes in the external environment. This is
why we must be strong and flexible to survive.
Our own business results were dealt a severe blow after the
collapse of Lehman Brothers. To prevail against global competition,
we continuously developed cutting-edge technologies, actively
employed superbly skilled local staff at our overseas bases, created
structures to fully leverage their capabilities and worked to realise a
long-term growth track that truly anticipates the future.
President Ishii, where have you started your efforts for realising
sustainable growth?
Ishii From April 2016, we first of all broadly reorganised our
management structure into four units (Corporate Operation
Unit, Product Business Unit, Regional Business Unit, Functional
Collaboration Reinforcement Unit) and simplified our organisation
(see page 15). Under this reorganisation, several executives who
previously held concurrent posts within the organisation have been
assigned exclusively to specific posts that are basically organisation
unit managers. We also clarified the roles, responsibilities and
authority of executives as well as simplified our decision-making
process.
Especially noteworthy, within the Product Business Unit (see
pages 16-18), we set up three business groups for the Seat, Interior
& Exterior and Unit Components businesses, respectively. By doing
so, we have established a structure for considering and executing
measures for realising the ideal shape of each product business in
the future and for leading the way in building growth strategies. A
key role of these business groups will be to seriously consider ways
to close the gap between our present capabilities and technologies
and the aspired shape for the future.
Additionally, we set up a structure for the respective business
groups to manage and execute planning, development and
production preparation by throughput for each individual product
project along with formulating and implementing growth strategies.
In the Regional Business Unit (see pages 19-22) that handles
actual production, logistics and other functions in each region, we
will clarify the aspired shape of this business from the perspective
of competitiveness and economic rationality centring on the
production structure. This unit must build structures close to its
customers to respond to customer needs while maintaining quality,
cost and delivery and reliably securing profits. We also will clarify
the roles of our global R&D and raise collaboration between the
respective regions and the Global Mainstay Hub as we operate
and manage businesses and maximise profit.
Akiyama I first get the impression that these major changes to your
management approach reflect your own identity and personality.
Toyota Boshoku is an originating company of the Toyota Group
and is strongly associated with manufacturing. President Ishii, you
have abundant experience in global marketing strategy planning
and creating management systems, so I am thinking you were
appointed president to spark innovation from a fresh perspective.
It is extremely difficult to create an environment conducive to open
and straightforward discussion that requires genuine rather than
formal answers. Toyota Boshoku’s initiatives for trying to realise such
an environment are truly outstanding.
Ishii Instead of trying to be an innovator myself, I intend to
create an environment that fosters innovation. By reviewing our
organisation and re-examining our meeting bodies globally, we have
created an unprecedented level of vitality internally.
13 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 14
These efforts to create innovation are generating results in various
areas. For example, when we established Toyota Boshoku America
Silicon Valley Office to perform information research and analysis of
leading-edge technologies for automated driving and interior spaces,
an unexpectedly large number of young members raised their hands
in expressing their eagerness to work at that office.
The Product Business Unit that will handle future innovation will
determine technologies needed for realising our aspired shape and
decide how to develop these technologies. This will be part of a
mid-term management plan incorporated into an action plan and
roadmap.
“Quality of time and space,” Direction of Growth StrategyAkiyama I love cars and drive a BMW i3 equipped with seats made
by Toyota Boshoku. From this perspective, I have a strong interest
in Toyota Boshoku’s future growth strategy. President Ishii, could
you describe the types of products Toyota Boshoku will provide
to markets around the world and the concepts embodied in these
products?
Ishii The mobility environment is dramatically evolving and
diversifying as vehicle concepts to the present are being profoundly
reshaped. These changes include not only an increase in electric
vehicles and fuel cell vehicles but also the advent of automated
driving, car sharing and personal mobility. Toyota Boshoku seats and
other products are not immune to these trends. For example, further
advances in automated driving require that besides just considering
mobility we must also think about enhancing the comfort of interior
cabin space that enables passengers to spend their time in a more
meaningful way. With this in mind, concepts for raising the value of
time spent inside mobility interior spaces is crucial.
Toyota Boshoku’s vision contains our aspiration of “A company
that persists in proposing excellent mobility for customers
throughout the world.” In keeping with this aspiration, our
fundamental mission should focus on “Quality of time and space.”
In other words, we should provide enriched and high-quality time
and space to people in mobility interior spaces as we consider the
direction of our growth for the future. I would also like to consider
what the Toyota Boshoku group can do in this area and expand the
ways we can respond. We will take the initiative and lead markets
with proposals which offer values in comfort that considers design,
light, sound and air as a single space in addition to providing value
in terms of safety and the environment.
CEO Akiyama, I can truly relate to your company’s corporate
philosophy of “Challenging the creation of new value.”
Akiyama Creating new value hinges on being able to keenly perceive
shifts in the environment and respond with quick action. Therefore,
when considering ways to enhance perceptiveness, I naturally
end up focusing on the so-called Sangen Shugi (Three Reals
Philosophy) consisting of Genba (actual place), Genbutsu (actual
thing) Genjitsu (actual facts). This philosophy means go and see for
yourself and understand the actual situation. Since our inception,
our design development engineers have regarded the locations of
our customers as their very own development sites. These engineers
believe that possessing sensibilities whereby the joy of customers is
equivalent to their own joy is one of their key strengths that in turn
allow them to perceive new needs.
There is one successful achievement in particular that serves
as the starting point for our company. This was when one of our
inspection instruments produced at a plant operated by just two
of us was introduced at a production line in a core plant that
manufactured the world’s most advanced portable audio devices at
that time. We talked directly to the customer, observed the actual
location and were able to rapidly make continuous improvements in
the presence of the customer. This enabled us to win the confidence
of our customer. We call this process the Direct Feedback Cycle and
have positioned this as a core competency.
Ishii We share the same spirit of manufacturing. Toyota Boshoku
seeks to develop and offer seats, interior and exterior components,
and unit components as dream-filled products. We plan to establish
the direction of our growth strategy in autumn 2016 and formulate
a roadmap that specifies the matters we must execute by 2020.
Toyota Boshoku will decisively complete efforts to solidify our
13 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 14
Top Dialogue
Top Dialogue
business footing, while drawing up our growth strategy toward the
realisation of our aspired shape. We will also clarify targets to be
attained in 2020 and devise concrete initiatives as our medium-
term management plan. By decisively executing this medium-term
management plan, Toyota Boshoku will strive to achieve sustainable
growth. You can count on this.
CSR Initiatives Befitting Sustainable GrowthAkiyama The importance of CSR is rising in striving for sustainable
growth evolving around business strategies and regional strategies.
What are your thoughts on this?
Ishii In terms of CSR, I believe we must work to meet the needs
and expectations of all stakeholders. We will strive to meet the
expectations of the communities where we undertake our business
as well as customers, company members, suppliers, shareholders and
investors by raising and appropriately allocating the corporate value
generated through our businesses.
First of all, in terms of the environment, we are a company
engaged in manufacturing and therefore environmental activities are
naturally of paramount importance. We consider global warming as
being in a particularly critical state. In response, we have formulated
the 2050 Environmental Vision and set six Stretch Environmental
Goals (see page 46) and will take on the challenge of achieving
zero CO2 emissions in business activities and zero CO2 emissions in
product lifecycles. As a concrete action plan for realising the 2050
Environmental Vision, we formulated the 2020 Environmental Action
Plan and activities under this plan will be started in fiscal 2016. In
non-environment-related areas, to the present we have devoted
major efforts toward compliance, risk management and social
contributions. Going forward, we will undertake our activities while
broadening our perspective and considering how we can contribute
to all stakeholders and how to assess these contributions. We will
position CSR as the core of our corporate management and give
shape to initiatives in our medium-term management plan while
using new KPIs* that will be formulated in fiscal 2016 to implement
and assess the progress status of these initiatives.
* Key Performance Indicator
Akiyama We are now in an age when CSR activities should be
positioned as one business plan and taking action is essential.
I understand as well that a company must realise a high level of
respectability worthy of the trust of society beyond creating any
indicators and plans. My company undertakes business based on the
management pillars of “employee satisfaction,” “product quality”
and “customer satisfaction.” However, when it comes to CSR, we
place top priority on initiatives for quality.
Finally, what kind of year do you expect in fiscal 2016?
Ishii I expect this to be a year in which we implement new
ambitious initiatives such as those I have explained. We will place
top priority on successfully completing measures undertaken
since fiscal 2014. These include strengthening development and
production capabilities to solidify our footing as well as clarifying
growth strategies toward the future of the Toyota Boshoku group
under our new organisation and structure. The Toyota Boshoku
group undertakes its business globally backed by numerous people
with diverse personalities and skills. I would like to make this a
year when we take our first step toward becoming a company
where these diverse human resources can actively play key roles at
their respective workplaces throughout the world toward creating
a future for the Toyota Boshoku group. For this reason, from the
standpoint of diversity management, I seek to create an environment
that encourages people to think on their own about various issues.
This includes thinking about the types of systems that fully maximise
the capabilities of each person, the ways in which members can
contribute to society while also achieving personal growth, and
what type of future they can envision for the company.
We will vigorously push forward with efforts to raise corporate
value through sustainable growth to meet the expectations of
our shareholders. In working toward this objective, I ask for your
ongoing support. CEO Akiyama, I am confident we can meet your
expectations as well.
Akiyama I know you will. I am looking forward to your good results.
Thank you for inviting me to this dialogue today.
Ishii It has been my pleasure as well.
15 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 16
Aiming for Sustainable Growth through Growth Strategies Evolving around Products and Regions
The mobility environment in the automobile industry is now changing dramatically and consumer preferences are expected
to become increasingly diverse. With the Product Business and Regional Business serving as two pillars, Toyota Boshoku will
stride forward dynamically to build a solid business structure and improve competitiveness while formulating future growth
strategies that anticipate changes in the market environment and in the preferences of end-user customers. Here, we interview
the group chiefs of each Product Business and Regional Business groups to learn about the future growth potential in their
businesses and regions and their aspirations for these businesses.
Toyota Boshoku will strengthen its development
capabilities and production technologies and production
capabilities as well as formulate and implement growth
strategies under a newly initiated structure consisting of
three business headquarters, namely the Seat Business
Group, the Interior & Exterior Business Group and the
Unit Components Business Group.
Product Business Regional Business
Toyota Boshoku will raise the fundamental
competitiveness of its manufacturing and utilise the
respective characteristics of five geographic regions
consisting of Japan, The Americas, Asia & Oceania, China
and Europe & Africa.
Interviews with the Group Chiefs of the Product Business and Regional Business Groups
Corporate Operation Unit
Prod
uct
Busi
ness
Uni
t
Regi
onal
Bus
ines
s U
nit
Corporate planning 1 Business reform2 Profit control3Corporate management4 Pioneering research & development5
Seat Business 1Interior & Exterior Business
2
Unit Components Business 3
Japan1The Americas2Asia & Oceania3China4Europe & Africa5
Functional Collaboration Reinforcement UnitMarketing, sales & purchasing1 Research & development2Production engineering3 Quality 4 Production control 5
Safety, health & environment6Manufacturing and craftsmanship promotion7
[Structures and organisations for formulating and executing growth strategies]
15 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 16
With production lines at over 40 bases worldwide, the Seat
Business is the Toyota Boshoku group’s mainstay business.
Globally, however, we rank third in the industry and in fact
still lag behind the top-ranked mega-suppliers. Given this,
it is absolutely essential that we solidify our footing and
accelerate efforts to develop appealing new products and
execute business structural reforms to ensure growth in
the coming years.
Promoting the development of even higher added-
value products
I believe that responding to the rapidly approaching major changes
in the mobility environment, firmly grasping the needs of users
and raising the quality of time and space will be the sources of our
competitiveness.
First, in terms of development, I am confident that we are fully
leveraging the benefits of the integration of the mechanical seat
frame component businesses of Aisin Seiki Co., Ltd. and Shiroki
Corporation into the operations of Toyota Boshoku in November
2015. We will move ahead in developing even higher added-value
products by drawing on our technologies cultivated to the present
and combining various newly added control system technologies,
including seat motor technologies.
Automated driving is now just around the corner and automated
control is expected to be adopted for all vehicle functions. For
example, there will probably be a need for a system that wakes
up and relaxes drivers based on biological information received
using the seat as a sensor. I would like to see Toyota Boshoku offer
proposals for creating new value such as providing comfortable rides
based on health conditions and driving situations.
Seeking to Provide “Quality of time and space”In aiming for sustainable growth, the Toyota Boshoku group executes its fundamental mission of
“Quality of time and space,” or in other words, providing enriched and high-quality time and space
for people in mobility. Our efforts to realise this mission are focused on three businesses, namely the
Seat, Interior & Exterior, and Unit Components businesses. Here, three group chiefs in charge of each
headquarters discuss the direction of future growth and share their aspirations for their businesses.
Increasing competitiveness and creating new value that realises the next
generation of comfort
Seat Business
Strategies for Each Product
Business
Strategies for Each Product Business
Executive Managing OfficerGroup Chief, Seat Business Group
Kohei Hori
17 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 18
The Seat Business will also enhance its high added-value functional
components and take specific actions to promote the spread of
devices that pursue convenience, such as power seats and easy-to-
use seat configurations.
Another key objective will be to actively promote human resources
development in anticipation of the arrival of self-driving. The Seat
Business will nurture control systems engineers and plans to create
a development team in the United States, which is at the forefront
of automated driving, to grasp cutting-edge trends and needs and
disseminate related information.
Sales, technology and production engineering functions are
all working in unison to discuss customer needs and product
marketability with the aim of producing even better seats and
providing diverse values to automakers.
highest level of mobility life.
Initiatives for fiscal 2016
In fiscal 2016, our principal tasks will be to develop human
resources and focus on teamwork as well as identify the overall
strengths and weaknesses of the Interior & Exterior Business.
In conjunction, we will draw up and execute an action plan for
growth. For human resources development, the Interior & Exterior
Business will build structures that enable members to acquire a
diverse range of capabilities spanning such functions as materials,
development and design, and production technologies. At the
same time, we will establish an environment where members are
organically linked as a team in performing their jobs.
On a different front, we must continuously develop core
technologies such as those for lighter weight, heat management
and noise and vibration harshness (NVH) based on our elemental
technologies for realising safety and low costs. It will also be
essential for this business to take measures for responding to the
Turning to production, I foresee a likely need to re-evaluate
our current production bases, and this will probably involve
reorganisation. First, we will hold extensive discussions about
our approach to production and establishing a flexible and highly
efficient production structure resilient to external changes. Among
our current production lines, there are only a few areas where both
humans and robots can actually work together, and we need to
consider where, for example, robots can perform a greater share of
heavy work.
Initiatives for fiscal 2016
In fiscal 2016, our first priority will be to steadily draw out the
benefits derived from the Seat Business integration I alluded to
previously and to decisively create new strategies for the future.
The Interior & Exterior Business is guided by its mission
of coordinating, proposing and providing a variety of
components and products as a systems supplier. We intend
to increase our collaboration with the Seat Business and
other businesses to create more appealing mobility spaces.
Encouraging free thinking and developing creative
products
I believe the driving force that propels our long-term growth will
be the development of people capable of thinking and acting on
their own and making proposals rather than passively waiting for
top-down instructions. Acting on this belief, the Interior & Exterior
Business will make its utmost efforts to create an open workplace
environment and corporate culture that enables members to work
energetically and perform their jobs based on unconstrained ideas.
We also plan to nurture the capabilities of members so that we
can develop products depended on by customers worldwide as a
systems supplier, raise total coordination capabilities and offer the
Interviews with the Group Chiefs of the Product Business
Strengthening collaboration across the board and becoming a systems
supplier customers can count on
Interior & Exterior Business
Managing OfficerGroup Chief, Interior & Exterior Business Group
Masamichi Sobajima
17 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 18
diffusion of hybrid vehicles (HV) and electric vehicles (EV) to respond
to changes in power sources and expand our business fields.
We also believe that human resources are important. Specifically,
we must develop human resources who possess an awareness of
markets, knowledge of production technologies, sensibilities for
keenly perceiving deeper trends and the ability to undertake flexible
and advanced R&D.
Achieving sustainable growth will also depend on the Unit
Components Business establishing a recognised presence not just in
Japan but also globally in addition to offering automakers and end
users more enriched and high-quality time and space in mobility.
Initiatives for fiscal 2016
We plan to appoint leaders for undertaking integrated operations
from planning to production in our four categories and promote
systematisation within each of these product lines.
Along with this, the Unit Components Business will enhance the
efficiency of product development and create various systems and
speed up the time from development to mass production. We will
develop each person’s technical skills and capabilities as well as
encourage the creation of system products based on new concepts
through vertical linkages between people. We will actively implement
a host of measures based on the belief that getting off to a running
start will determine our shape in 2020.
The Unit Components Business separates its product lineup
into four categories, namely filters, air induction systems,
fuel cell (FC)-related products and electric powertrain-
related products, and emphasises the strengths of each
product line. We will broaden our business fields for FC-
related products and electric powertrain-related products
and believe these are highly promising business fields for
the future.
Strengthening competitiveness through highly
functional and systematised products
To expand sales and build brand power for its filter products, the
Unit Components Business will introduce highly functional products
that help create comfortable air in the cabin space as well as launch
price-competitive products in the after-market. At the same time, we
must also cultivate new markets.
For air induction systems, our main objective is to offer products
ranging from ducts to head covers as systems. Also, by strengthening
our proposal capabilities I believe we can expand our sales channels
and grow to become a leading company.
As for FC-related products, with an eye on future market growth,
we will expand and systematise our FC-use air induction systems
and FC stack peripheral products and propose system products that
combine these.
In electric powertrain-related products, the Unit Components
Business intends to undertake development focused on the further
Strategies for Each Product Business
Expanding our business fields and pursuing systemisation in four main
product lines
Unit Components Business
Managing OfficerGroup Chief, Unit Components Business Group
Shouji Adachi
needs of each geographic region, such as by offering superbly
competitive products for emerging markets and top-of-the-line
products for Europe.
Besides developing and selecting optimal design, technologies
and production methods, the Interior & Exterior Business must
also address changes in mobility space accompanying the advent
of automated driving. A crucial objective is to create new value
while pursuing safety and comfort. We will continually take on
the challenge of creating products that use the sensibilities and
unique aesthetic senses of Japanese people and ensure these
products are recognised as global standards.
19 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 20
Business environment in the Japan region
Japan’s market has now entered a mature phase as unit sales of
automobiles have peaked and this has sparked intense competition.
The Japan region’s key mission is to collaborate closely with the
growth strategies of the Product Business, refine manufacturing
capabilities cultivated to the present and promote the global spread
of Toyota Boshoku’s advanced materials, production engineering and
production methods.
Director, Executive Managing OfficerGroup Chief, Japan Region Group
Tokuji Yamauchi
Building a lean production structure as the “mother” for the five geographic regions
Japan
Raising manufacturing
capabilities based on safety,
quality and the environment
Safety, quality and the environment serve
as the foundation of operations at all our
plants and affiliates. I believe that steadily
and earnestly promoting measures in
these areas will help raise the level of our
production operations. Initiatives promoted
to the present have already yielded notable
results. For example, in 2015 we won the
Best Karakuri KAIZEN Prize as well as the encouragement prize of
the QC Circle Kaoru Ishikawa Award. As other achievements, an
increasing number of members have now obtained qualifications
such as technician and maintenance technician qualifications. The
Achieving Global Growth Utilising the Unique
Characteristics of Each RegionTo raise competitiveness and realise sustainable growth, the Toyota Boshoku group is focusing on
ensuring stronger-than-ever operations and management in the five geographic regions of Japan, The
Americas, Asia & Oceania, China and Europe & Africa. As part of these efforts, we are working to realise
strong manufacturing and are developing our human resources. Here we introduce the direction of our
strategies and the ideas of each headquarters’ group chief leading their respective regions.
Strategies for Each Regional
Business
The Americas
China
Asia &Oceania
Europe &Africa
Japan
19 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 20
Strategies for Each Regional Business
Strengthening manufacturing foundation and becoming a company that can prevail in a major market
TheAmericas
Executive Managing OfficerGroup Chief, The Americas Region Group
Yoshihiro Ito
Business environment in The
Americas region
In the United States, prospects for
significant growth in the automobile
market had remained dim since the
collapse of Lehman Brothers in 2008. The
picture brightened in fiscal 2015, however,
as the volume of new car sales, centring
on pickups and SUVs, posted an increase
that was underpinned by the impact of low
crude oil prices and a buoyant economy.
Further strengthening our earnings base
Net sales in The Americas region increased thanks to a rise in
production in the North American market and the impact of
exchange rates. At the profit level as well, the positive results of
our Japan-U.S. integrated profit structure reform activities have also
emerged and we recorded an operating profit in The Americas for
the first time in eight fiscal terms.
We achieved these results through steady measures to reduce
fixed costs, such as promoting local procurement of components
and trimming logistics costs, and through the strengthening of our
manufacturing foundation by extensively standardising business
operations and creating efficient processes to assure high quality.
Going forward, we will further strengthen our earnings base and in
regions outside North America we will closely observe market trends
and build an earnings structure strongly resilient to changes in the
external environment.
Measures for sustainable growth
To earn even higher levels of trust from customers and further
improve our competitiveness, we will promote the creation of an
efficient development structure by bolstering collaboration between
the development structures of Toyota Boshoku and The Americas
Regional Management & Collaboration Hub (RM&CH).
Additionally, The Americas region will strive for optimal production
and formulate strategies for each product and region as well as
plan and develop highly appealing added-value products that reflect
market trends.
In working toward these objectives, we will enhance the education
of members who actually work at business sites and focus on
people-to-people exchanges with Japan and promote member
participation in technical skills development programmes. This will
help ensure that diverse human resources can improve by learning
from each other as they attain growth. In implementing these
measures, we will strive to become an indispensable company that
earns the trust of society.
Japan region will continue to solidify its footing by accelerating
efforts to strengthen business management and develop human
resources capable of supporting manufacturing.
Measures for sustainable growth
There are still variances in manufacturing capabilities among our
plants and affiliates. To eliminate these differences we will promote
the autonomy of each site by executing measures to raise their
levels of manufacturing. We are now able to move quickly to
carry out such measures by integrating these plants and affiliates
through changes to their management structures. By leveraging
the unique advantages of the Japan region and promoting mutual
enlightenment valuing harmony among people, plants and affiliates
are now able to adequately utilise on-site knowledge as we aim to
build lean production structures that can respond flexibly to changes
and implement measures in advance. As the “mother” for raising
manufacturing capabilities globally, the Japan region will fulfil its
responsibility for developing future site managers and management
teams at each site around the world.
To become a company trusted by members and their families
and other stakeholders, we will raise the value of our existence by
establishing bright and invigorating workplace environments and
build a lean production structure
21 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 22
Business environment in the
Asia & Oceania region
A notable feature of the Asia & Oceania
region is the presence of numerous
distinctive countries with different historical
backgrounds, cultures and national
land sizes. Owing to these features, it
is necessary to respond to and devise
measures for each country individually
rather than undertaking business that
covers the region as a whole.
Building production and logistics structures
Our businesses in this region can be broadly categorised into
businesses undertaken completely within one region and businesses
consisting mainly of exports to other countries as part of the broader
supply chain. A typical example of a business undertaken completely
within one region is seat assembly and the latter includes seat
covers and press components. In 2014, we further enhanced our
production structure in Asia with the startup of production at Toyota
Boshoku Lao and Thal Boshoku Pakistan.
In Asia, the development of infrastructure such as the East-West
Business environment in the China region
China’s automobile market is a true battleground. Besides the
presence of the world’s leading automakers, the emergence of
Chinese automakers is also becoming increasingly conspicuous.
With drastic changes occurring year after year, the one major change
Economic Corridor and the North-South Corridor is progressing, and
in response, we must re-evaluate our logistics. At the same time, we
are strengthening our foundation in safety and quality.
Meanwhile, creating appeal that reflects the region is also
important. To respond to expanding markets for compact cars,
besides the development of products in Japan used in common
worldwide, we will also leverage our strengths of being able to
achieve cost reductions extending to raw materials and materials
and to plan and develop products that incorporate opinions of
local customers. We will also closely observe processes spanning
development to manufacturing for Toyota Motor Corporation’s
Innovative International Multi-purpose Vehicle (IMV) and Entry Family
Car (EFC) sold and produced mainly in the southern hemisphere.
Measures for sustainable growth
We plan to strengthen our competitiveness as an RM&CH
through initiatives that include implementing standardisation in
manufacturing and reforming the awareness of members.
We not only enable highly motivated members to tackle new
challenges and provide them with venues for playing active roles but
also implement measures so that all members can take pride in their
jobs and company.
Competition across all countries is expected to intensify as tariffs
within ASEAN are reduced in actuality to zero in 2018. We will also
respond to the discontinuation of production by a customer in Australia.
Another emerging issue will be how to configure our businesses in
this region. Therefore, we will focus closely on issues in each country,
discuss our aspired shape and prepare and implement plans to
strengthen our earnings base and raise the value of our presence.
that lies ahead is the adoption of new fuel
economy regulations of 100km / 5L (20km
/ L) in 2020.
Development that responds to
the needs of the region
Until recently, development, evaluation
and sales were each carried out at
separate locations and this made organic
collaboration difficult. In March 2015,
we took an important step in improving
this situation when we began operations at a new company
Establish a local development structure and raise competitiveness in this growing market
China
Director, Executive Managing OfficerGroup Chief, China Region Group
Sunao Yamamoto
Interviews with the Group Chiefs of the Regional Business
Executive Managing OfficerGroup Chief, Asia & Oceania Region Group
Yasushi Minami
Enhancing production and logistics structures in this region dotted with diverse countries and expanding markets for compact cars
Asia & Oceania
21 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 22
Business environment in the
Europe & Africa region
Next-generation trends are born in Europe,
which is filled with automakers boasting
distinguished histories and tradition, plus
there is so much to learn in this region
in terms of technologies and design. The
automobile market in Europe is likely to
maintain its current state. On the other
hand, we expect markets in Russia,
Turkey and South Africa to grow steadily.
Nonetheless, exchange rates and resource prices have a tremendous
impact on our operations and so this outlook also includes a host of
uncertainties.
Reducing fixed costs and developing human resources
Our task is to further raise the strengths of human resources and
organisations capable of responding flexibly to fluctuations in
mass production and changes in the external environment such as
currency exchange and political conditions. Accordingly, we have
worked to realise lean operations, reduce fixed costs and logistics
costs, and improve quality. At the management level, we have
strengthened cost management.
During the current fiscal year several new model vehicles are
scheduled to be launched within the region. We first of all intend
to make reliable responses and promote smooth production
preparations.
Measures for sustainable growth
Our operations in Europe face several inherent difficulties. Besides
differences in countries, currencies and languages, each production
entity is situated in a different location and the currency exchange
situations vary in each country. For these reasons, promoting the
self-reliance and strengthening of each regional entity is essential. To
do so, we will strengthen our manufacturing more than ever before,
build clear and transparent management structures and undertake
well-planned human resources development.
As other measures, we will immerse ourselves in manufacturing in
the fiercely competitive European market, learn from each other and
apply the strengths acquired from this experience to help strengthen
the Toyota Boshoku group as we strive to become a company
trusted by customers.
Finally, we will optimise our resources by restructuring our
business in Europe and make our utmost efforts to further improve
our earnings power.
Taking a strategic approach in the region where automobile trends are born
Europe & Africa
Executive Managing OfficerGroup Chief, Europe & Africa Region Group
Masaya Ishii
Strategies for Each Regional Business
building that integrates our headquarters and R&D functions into
a single location. Our proposal-based activities have already led
to the adoption of seats and interior components by automakers,
and in fiscal 2016 we intend to accelerate these activities. We are
also introducing test evaluation equipment to respond to various
regulations and strengthening collaboration among departments as
we establish a structure for quickly responding to customer needs.
As another task, we will analyse the respective strengths and
weaknesses of each business entity and implement appropriate
countermeasures. We will also carry out efficient procurement by
taking advantage of economies of scale for such materials as surface
materials, resin materials, steel materials and urethane materials.
Measures for sustainable growth
We have worked in the past to develop the abilities of locally
employed human resources and now a priority issue for the future
will be to develop and appoint management personnel.
In China, there is a deep trust of Japanese brands, and with this in
mind, we will work to become a trusted company on the corporate
level. I envision our ideal form as being a company that is loved by
our customers and with members who feel their jobs are meaningful.
As part of social contribution activities, the entire China region
began undertaking tree-planting activities in Inner Mongolia in 2013
to prevent desertification (see page 44). Regarding our initiatives in
fiscal 2016, we increased the number of participants, which included
the first-time participation of local partner companies, and also
increased the number of trees planted.
In the future as well, I would like to continue being a group
trusted by Chinese society.
23 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 24
Midland Square Cinema 2 started from a desire to
provide a special space that transcends traditional
concepts based on our corporate philosophy of
creating better products that can be enjoyed in a
better environment. In addition to a high-quality image
and sound system as well as diverse programming,
our key area of focus was the seating. We wanted to
deliver seats that bring a smile to the faces of more
customers, and that’s why we requested the help of
Toyota Boshoku, professionals who know all about seating comfort and who
have worked for years on different kinds of seats in addition to those for
automobiles such as seating for the Shinkansen (bullet train) and aircraft.
It was extremely stimulating working with people from Toyota Boshoku,
whose strong determination in production really struck a chord with me. As an
example, even though I felt the seats were already to an excellent standard,
they would tell me there was still room for improvement, and it was this
commitment to comfort that came across strongly. Their tenacity in leaving no
stone unturned, even for parts invisible to the naked eye like the sensation of
the armrest, resulted in a truly premium seat, and that excites me.
Midland Square Cinema has two annexes with a total of 14 screens, the
most of any cinema complex in Nagoya City, so we can show a wide variety
of films that will meet the expectations of all kinds of movie lovers. First and
foremost, come along and experience it for yourself. The seats, the sound, the
images, the films – everything combines to give you a truly premium space to
enjoy your movie.
For the first time, Toyota Boshoku has engaged in creating premium movie theatre seats, which were installed in the Midland Square
Cinema 2 that opened on July 15, 2016 in front of Nagoya Station in Aichi Prefecture, Japan. Toyota Boshoku took charge of all aspects
of design and development*, from styling and material selection to the finished product. In this section we present Nakanihon KOGYO
Co., Ltd., which runs the theatre, and introduce the attractive features and particular areas of focus in design that make the seats so
suitable for the new theatre. * Design and development: Toyota Boshoku / Development of synthetic leather: TB Kawashima / Design and production: Kotobuki Seating Co., Ltd.
Movie Theatre Seats Based on Toyota Boshoku’s Knowledge of Seat DevelopmentSpecial Extra
Creating a Special Space with the Ultimate in Premium Seating
The soft texture greets users
the instant they sit down while
the shape of the headrest pad
ensures a nice snug fit.
Side panels
The side panels give the
feel of a private space,
enabling users to fully
concentrate on the movie
screen. The lighting on
the panel top and the
footlights transport users
to another world.
Armrest
Movie theatres are not your everyday space and we wanted to make a seat
that really maximises that feeling of enjoyment for moviegoers. We relied on
ergonomics to draw out the ultimate shape and angle of the seat surface along
with the position and feel of the armrest. By doing so, we produced a seat that
provides a feeling of comfort the moment you sit down and that ensures you
do not get tired no matter how long you are there. We paid careful attention to
colour and materials as well, and the surface of the seats features antibacterial
and antivirus processing, a first for synthetic leather.
Members involved in the project
(From left)Division General Manager, Marketing & Sales Planning DivisionMitsuru Sugiura
Chief, Interior & Exterior Advanced Development DivisionSeiji Chaza
Department General Manager, Design DivisionHitoshi Yasuda
President & CEONakanihon KOGYO Co., Ltd.
Toru Hattori
Bringing smiles to customers’ faces
Interview with Toru Hattori, President of Nakanihon KOGYO
In making unique Toyota Boshoku seats
Seat features
Compressed and processed Japanese
cedar was used for the end pieces to
accentuate the smooth texture and
beautiful wood grain.
Headrest
Department General Manager, Marketing & Sales Planning DivisionAkinori Ebato
Interior & Exterior Advanced Development DivisionShingo Okahara
23 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 24
SocialActivit ies
CSR Management
P27
Together with Company Members
P35
Together with Suppliers
P41
Together with Customers
P32
Together with Shareholders and Investors
P40
Together with Global Society & Local Communities
P43
Working toward Environmental Conservation in All Facets of BusinessThe Toyota Boshoku group aims for growth that is in
harmony with the environment and strives to preserve
the environment in all areas of our business activities. We
promote environmental conservation worldwide and work
together to reduce environmental loads by conducting
ecofriendly development, design, production and logistics.
At the same time, we create products that are both
comfortable and ecologically responsible by maximising
the potential of our environmental technologies in order
to contribute to the realisation of a sustainable society.
EnvironmentalActivit ies
Environmental Management
P51
Technology Development and Production Activities for Building a Recycling-Oriented Society
P57
Development and Production Activities for the Realisation of a Low-Carbon Society
P55
Reduction of the Use of Substances with Environmental Impact and Carrying Out Social Activities in Co-Existence with the Natural EnvironmentP59
Starting in fiscal 2015, Toyota Boshoku receives Independent Assurance on some of its environmental performance indicators in order
to enhance the reliability of environmental information. Indicators that have been assured are indicated with the assurance symbol
(see pages 52, 55 and 56).
Report on Environmental Activities P45~60
Formulated 2050 Environmental Vision P45
Review of Five-year Toyota Boshoku group 2015 Environmental Action Plan P49
Independent Assurance P60
Special Feature: Development and Design in Harmony with the Environment
Toyota Boshoku’s Environmental Technology Evolving with Automobiles P47
Report on CSR Performance Indicators P25~44
Targets and Results of Social Activities P25
Environmental
Activities
Special ExtraSocial A
ctivities
Promoting Corporate Growth While Fulfilling Our Responsibilities as a Good Corporate CitizenThe Toyota Boshoku group is working to build an enterprise
that contributes to society and is promoting corporate growth
while fulfilling our responsibilities as a good corporate citizen.
We defined our commitment to stakeholders in our corporate
philosophy and undertake business activities based on this
commitment to fulfil our social responsibilities, with the aim
of continuing to be trusted by customers, shareholders and all
other stakeholders.
25 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 26
The Toyota Boshoku group has established its visionary goal under its vision to be “a trusted company that grows together with all
stakeholders” as our aspired image of our place in society. The Toyota Boshoku group is collectively carrying out social activities to
realise this aspiration. Measures were taken in fiscal 2015 to review our initiatives from the perspective of the seven core themes of
ISO 26000 with the aim of enhancing the level of activities.
Targets and Results of Social Activities
Sustainability theme Mid-term targets FY2015 action results Self-assessment FY2016 targets Page
CSR Management
Corporate governance
• Maintain and improve governance system to ensure management transparency
• Selected two outside directors• Responded in line with the Corporate Governance
Code and disclosed status• Implemented review of regulations concerning
decision-making and meeting bodies• Implemented evaluation of effectiveness of
Board of Directors
○
• Enhance content of response in line with the Corporate Governance Code• Review quarterly regulations concerning
decision-making and meeting bodies• Increase effectiveness and dynamism of Board
of Directors
27
• Improve and operate internal control system
• Create global auditing system
• Shared audit findings with the division in charge and inspected response, etc. ○
• Conduct planned internal audits• Prevent fraud and misconduct by sharing
deficiency cases28
Thorough compliance awareness
• Firmly establish a system and structure that enables promotion of compliance globally
• Held CSR Committee in each region• Added labour laws to List of Legal Risk and
implemented compliance• Implemented Corporate Ethics Month globally
(President’s message, workplace discussion and self-inspection of compliance)
○
• Achieve zero serious violations of law• Further utilise and raise awareness of the whistle-
blowing system• Increase the degree of implementation of guiding
principles through Corporate Ethics Month, etc.
28・29
Compliance with laws and regulations and awareness raising
• Improve global compliance system and continuously promote zero law violations
• Firmly established programme on compliance with antitrust laws and anti-bribery and promote consistent compliance
• Continuously implemented training for Export Compliance Promotion Committee members and training course by grade
○
• Achieve zero serious violations of law• Inspect and enhance compliance with antitrust
laws and anti-bribery using the List of Legal Risk• Conduct training on various laws globally,
including for executive officers
29・30
Intellectual property management
• Improve global intellectual property management system
• Achieved 100% of target for number of patent applications in Japan and RM&CH
• Realised zero patent infringements though continuous implementation of patent assurance activities
○
• Promote activities to enhance the quality of patents and achieve the target number of patents granted
• Continue checking activities to ensure early identification of problem patents to prevent patent infringements
30
Confidentiality and information security management
• Strengthen confidentiality management at a global level
• Conducted self-inspections and improved weak points at RM&CH using confidentiality-related risk standards in each region
• Currently deploying to respective business entities in sequence
○
• Strengthen measures to prevent leaks of confidential information
• Conduct ongoing self-inspections related to confidentiality risk
• Strengthen internal education
30
• Enhance global security level
Thorough reinforcement of risk management
• Reinforce risk management on a global level
• Make preparations to ensure impact does not spread to other regions (Conducted drills to ensure quick resumption of production at Toyota Boshoku plants)
• Implemented drills for major disaster response at all RM&CH
○ • Narrow down to core risk focused on business continuity and conduct related measures 31
Together with customers
Promoting education, training and awareness-raising activities for quality
• Secure quality assurance professional personnel who are capable of assuming their roles globally
• Promote global quality control (QC) activities and enhance educational system
• Provided training to enhance quality-related skills in line with QC Examination, Level 3 proficiency of members in quality-related fields
• Certified auditors Each RM&CH: assigned at least one
△
• Continue training to increase the quality skills of members engaged in quality-related fields and deploy activities to improve problem-solving capabilities
• Certified auditors Each RM&CH: assign at least two
32
〜
34
Enhance and strengthen quality assurance system
• Establish global quality assurance system
• Acquired TS 16949 at 6 plants outside Japan ○ • Promote planned acquisition of certification 32
• Cases of legal non-compliance: 0 ○ • Establish product audit system 32
Deployment of quality-related activities
• Significantly reduce products with defects delivered and delivery complaints
• Ensure swift discovery and response to defects in products in the market
• Strengthened degree of completion in terms of quality toward mass production
• Strengthened EDER*1 activities for new products• Missed target for the number of cases of free
repairs
△• Prevention of significant quality issues• Swift discovery and response to defects in
products in the market
33・34
(Assessment : Achieved : Partially achieved : Not achieved)
Targets and Results of Social Activities
*1 Early Detection and Early Resolution
Com
plia
nce
■ Targets and Results of Social Activities
25 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 26
Social Activities
Sustainability theme Mid-term targets FY2015 action results Self-assessment FY2016 targets Page
Together with company members
Full respectfor human rights
• Reinforce respect for human rights training
• Implemented training to raise awareness of human rights for Toyota Boshoku members who were new hires and promoted
○ • Conduct ongoing implementation of respect for human rights training 36
Respecting diversity
• Promote active employment of global human resources
• Enhance reemployment system
• Actively promote female members
• Unable to achieve 10% of regular recruitment for people of different nationalities besides Japanese to join Toyota Boshoku as members
• Unable to achieve statutory employment rate of 2.0% for persons with disabilities
• Created a scheme for the job posting system• Conducted workplace interviews with young female
members
△
• Actively hire people of different nationalities besides Japanese to join Toyota Boshoku as members (10% of regular recruitment in 2017)
• Achieve statutory employment rate of 2.0% for persons with disabilities
• Achieve smooth launch of job posting system• Provide flex-time for members with shortened working
hours and examine and enable telecommuting• Implement measures to develop and promote
active roles for female members
36
Promotion of human resources development
• Globally expand human resources development
• Develop personnel system and training programmes for nurturing Toyota Boshoku Global Leaders (TBGL)
• Revised the timeframe for Global Leader Training• Nurtured Master Trainers in each region• Expanded the framework for dispatching Global Trainees• Provided English training depending on level for
personnel requiring English ability• Promoted attending courses on Maintenance Training• Implemented supervisor education in China
○
• Conduct Global Leader Training• Continue to nurture Master Trainers• Encourage use of Global Trainee System • Continue to implement measures to improve
English ability• Provide Karakuri Training from regions outside
Japan and participate in exhibitions • Implement supervisor education in Europe
37・38
Promoting safety and health and health building
• Create global management in terms of safety and health activities
• Created inspection standards using a map of STOP6*2 hazard sources as a tool and deployed to each plant
• Implemented “safety communication time” incorporating mutually enlightening dialogue on safety
• Improved the implementation of safety basic actions (pedestrian crossings, pointing and calling, stair handrails, etc.)
○
• Promotion of creating a safe and comfortable workplace in which fatal accidents never occur (zero serious accidents)
• Realise a rate of 100% in factoring in standards for process design and equipment design in pursuit of intrinsic safety (Japan)
38・39
• Promote the development of physical and mental health
• Promoted mental health related activities1 ) Held mental health seminars for executive officers
and management personnel2 ) Completed preparations for response to enactment of
stress check law• Promoted ongoing initiatives to prevent lifestyle
diseases (Provided health guidance following medical checkup in 100% of cases and took steps to reduce the number of members with BMI of 25 or more and the smoking rate)
○
• Promote mental health related activities Implement activities to prevent mental illness by using a stress check
• Implement ongoing initiatives to prevent lifestyle-related diseases (Continue to provide health guidance after medical checkup in 100% of cases, reduce the number of members with BMI of 25 or more, set target for reducing smoking rate and promote activities to achieve this)
—
Together with shareholders and investors
Enhancingcorporate value and reinforcing information disclosure
• Earn greater trust by disclosing information in a timely and appropriate manner
• Steadily implemented timely disclosure according to laws and regulations
• Regularly convened Information Disclosure Committee○
• Ensure appropriate disclosure through operation of Information Disclosure Committee Make decision on obligations once a month
• Achieve 100% in compliance rate for timely disclosure
40
• Develop a stable shareholder base through proactive investor relation activities
• Implemented financial results briefings, analysts meeting, individual visits to investors and small meetings
• Implemented plant tours for individual shareholders• Released financial statements in English on our
website
○• Hold first and third quarter financial results
briefings• Take part in conferences with overseas investors• Hold seminars for individual investors
40
Together with suppliers
Practicing open, fair and transparent business dealings and implementation of CSR activities in supply chain
• Globally develop basic procurement policy
• Expand and permeate CSR activities to global suppliers
• Renewed basic transaction agreements (added CSR related provisions) with all companies
• Held CSR study sessions for suppliers• Promoted procurement activities that give
considerations to human rights and the environment (initiatives for conflict minerals)
○
• Expand content of CSR study sessions for suppliers
• Continuously implement procurement activities that give considerations to human rights and the environment (initiatives for conflict minerals)
41・42
Creation of a global procurement system
• Strengthen global procurement capability and procurement foundation
• Expand and maintain activities under the Annual Supplier Meeting in Japan and each region
• Currently introducing a global cost benchmark system• Strengthened ties through meetings for global SPTT
activities*3 in global vehicle types
△
• Expand Annual Supplier Meeting in Japan and each region and establish a commendation system
• Introduce and expand a global cost benchmark system
• Continue and strengthen global SPTT activities
42
Together with global
society & local communities
Social contribution activities
• Promote global social contribution activities rooted in regions by respecting cultures and customs of regions in respective countries
• Implemented activities in conjunction with NPOs at all entities (support of those less fortunate, tree-planting activities, etc.)
• Participants in Japan region increased by 23% year on year through cooperation of rank-based group gatherings, etc.
○• Create opportunities for social contribution
activities in nearby business locations that are easy to participate in
43・44
(Assessment : Achieved : Partially achieved : Not achieved)
Targets and Results of Social Activities
*2 S: Safety T: Toyota O: 0 (Zero Accident) P: Project 6: 6 items (Being caught in machines, coming in contact with heavy objects, coming in contact with vehicles, falling, electrocution and coming in contact with heated objects)
*3 Supplier Parts Tracking Team: Outsourced production and manufacturing preparation follow-up activities carried out by a team
27 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 28
CSR Management
The Toyota Boshoku group is working to further enhance corporate governance through
respecting international behavioural rules in compliance with laws, regulations and ethics
in order to carry out sustainable business activities and meet the expectations and earn the
confidence of all stakeholders.
The Toyota Boshoku group fulfils its social responsibility
by conducting corporate activities based on the TB Way
and the Toyota Boshoku group code of conduct, which
express the values and behavioural principles shared
throughout the group in line with the corporate philosophy
of group management. We designate such matters as
accountability, transparency, ethical behaviour, respect
Fundamentals of CSR activities
The Toyota Boshoku group has stated as the first part of
its corporate philosophy the desire to promote corporate
growth while fulfilling our responsibilities as a good
corporate citizen in order to satisfy all stakeholders. To
realise this, the Company recognises the importance
of maintaining and improving management efficiency,
fairness and transparency as a global company alongside
efforts to ensure sustainable corporate activities and will
strive to expand and enhance its corporate governance.
Specifically, the Company will advance the following:
(1) Securing the rights and equal treatment of shareholders;
(2) Appropriate cooperation with stakeholders other
than shareholders; (3) Ensuring appropriate information
disclosure and transparency; (4) Appropriate execution of
the roles and responsibilities of the Board of Directors; and
(5) Engaging in constructive dialogue with shareholders.
Corporate governance systemIn addition to resolutely responding to the Corporate Governance
Code, Toyota Boshoku is working to strengthen corporate
governance with the aim of increasing corporate value.
The Board of Directors holds meetings at least once a month
Corporate governance
Auditing and Monitoring
Report
Discussion and ReportAssignment and Dismissal
Discussion and ReportDirection and Supervision
Auditing
Collaboration
Discussion and Report
Direction and Supervision
ReportAssignment and Dismissal
ReportManagement
reviewAccounting auditor
Management execution
Management MeetingCorporate Strategy Meeting / Corporate Planning Meeting
Report
Report
Committees, etc.
Monitoring and Guidance
Report
Auditing and Monitoring
Audit & Kaizen Dept.
Board of Directors (12 directors, including 3 outside directors)
Groups (business, regional, etc.) / Fields / Centres / Group companies (Group Chiefs, Field General Managers and General Managers of each centre: total 22)
Audit & Supervisory Board
5 Audit & Supervisory Board Members, including 3 outside
Audit & Supervisory Board Members
ReportAssignment
and Dismissal
Audit & Supervisory Board Office
Annual General Meeting of Shareholders
Decision-making
Corporate governance system
for stakeholders’ interests, respect for the rule of law,
respect for international codes of conduct and respect
for human rights as the fundamentals of corporate social
responsibility (CSR) activities. On this basis, measures are
taken to enhance CSR through various definable aspects of
corporate activities.
(Revised June 2016)
■ CSR Management
27 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 28
Social Activities
to decide on important management issues in such areas as
legal matters, policies for the fiscal year, project plans and
investment in facilities, while also monitoring conditions related
to the implementation of operations. In fiscal 2015, the Company
selected two outside directors with extensive experience and broad
knowledge in corporate management and other areas in order to
ensure the legality and appropriateness of decisions made by the
Board of Directors and directors’ business execution. The number
of outside directors also will be increased to three in fiscal 2016 to
further enhance objectivity in monitoring management.
In addition, Toyota Boshoku evaluated the effectiveness of the
Board of Directors in line with the Corporate Governance Code and
reviewed regulations concerning decision-making and meeting bodies.
Toyota Boshoku will change its management structure from fiscal
2016 with full-time executive officers positioned as organisation unit
managers within each field and group in an effort to clarify the roles,
responsibilities and authority of executive officers and simplify the
decision-making process to enable speedier management judgment.
The Company has also adopted an Audit & Supervisory Board
system in which directors’ management is audited by a five-person
structure that includes three outside auditors. Audit & Supervisory
Board Members attend key company meetings and conduct audit
hearings and visiting audits to each division as well as audit the
execution of operations of directors and the administration and the
status of financial affairs of the group’s subsidiaries.
Development and operation of internal control system
Self-inspections are conducted on the status of internal controls via
a checklist in order to regularly review and assess organisational
governance processes, and the respective internal auditing
departments are working to prevent inappropriate behaviour and
mistakes at all our global locations by conducting audits at Toyota
Boshoku divisions, plants, subsidiaries and affiliates.
The Toyota Boshoku group states in its corporate
philosophy that the Company will seek to promote
corporate growth while fulfilling our responsibilities as a
good corporate citizen.
Thorough compliance awareness and system creation
The Toyota Boshoku group clarifies its overall promotion system,
scope of activities and goals for compliance in each region, including
Japan, and conducts activities under strong leadership from top
management based on a global policy. The Company continuously
convened meetings with Regional Management & Collaboration
Hubs (RM&CH) to enhance cooperation and thereby improve and
strengthen compliance activities globally.
Personnel in charge of legal affairs in each region shared
knowledge of issues at
regular intervals through
such means as the Global
Legal Conference. This
served to promote mutual
understanding and deepen
cooperation between
regions as well as reinforce
the implementation of global compliance activities.
[Education and awareness raising]
Toyota Boshoku has developed a training system for compliance
that includes such core topics as antitrust law and anti-bribery and
is also working to ensure that all company members, including new
hires and members who were promoted, can acquire the necessary
Compliance
The Global Legal Conference aids in resolving issues and deepens mutual understanding in each region.
Number of participants in workplace discussions
FY2015 result
36,532persons
Attendance rate of outside auditors at Board of Directors meetings and Audit & Supervisory Board meetings
Fiscal year 2013 2014 2015
Attendance rate at Board of Directors meetings (%) 77 74 95
Attendance rate at Audit & Supervisory Board meetings (%) 79 77 97Rate of attendance by outside directors at Board of Directors meetings
Fiscal year 2015
Attendance rate (%) 96
29 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 30
knowledge regarding compliance. Personnel in charge of legal affairs
from the Legal Division at Toyota Boshoku and RM&CH conduct
workshops in Regional CSR Committees in consideration of the
conditions of each country and each region.
[Initiatives regarding Corporate Ethics Month]
Every year, the Toyota Boshoku group holds Toyota Boshoku group
Corporate Ethics Month on a global basis with full participation
by members. During this month, efforts are made to enhance
ethics awareness through various initiatives such as confirming our
corporate philosophy and reviewing members’ behaviour internally
and externally.
In fiscal 2015, Toyota Boshoku released a management message
stating that it would
prioritise compliance.
Workplace discussions
were also held based on
the theme of confirming
compliance in the
workplace.
[Considerations for human rights]
Measures regarding basic matters such as respect for human rights
have become essential in conjunction with global business activities.
At the Toyota Boshoku group, we are working to raise members’
awareness through various training related to our corporate
philosophy and monthly activities in order to ensure compliance with
laws and regulations as well as co-existence with local communities
by respecting various cultures, values and individuality.
[Global development of List of Legal Risk]
The Toyota Boshoku group is clarifying legal risks with regard to
specific legal matters that need to be complied with as they relate
to the various activities of the group. Based on this, efforts are
being made to review and evaluate legal matters, correct areas of
inadequacy and enhance compliance. In fiscal 2015, the Company,
led by RM&CH, worked to enhance a list of fields relating to labour
laws in all regions outside Japan.
[Enhancing consultation and whistle-blowing system]
The Anything Goes Counseling Office has been set up internally as
well as a reporting contact at a designated law firm externally to
establish an environment in which members from group companies
in Japan can easily seek advice without fear of reprisal. Members
can seek consultation or report issues concerning such matters
as workplace problems, legal violations and internal misconduct.
Initiatives are also being pursued to establish a whistle-blowing
system in regions outside Japan in order to develop a global system.
Compliance with laws and regulations and awareness raising
The Toyota Boshoku group globally promotes training on laws and
regulations and awareness-raising activities in order to thoroughly
comply with laws and regulations related to our businesses.
[Thoroughgoing compliance with antitrust laws]
Toyota Boshoku established the Company Policy on Antitrust Law,
in which we clearly declared that the Company will not tolerate any
behaviour violating antitrust laws and company members will not
commit any violations, with this declaration being shared globally.
Additionally, we formulated the Antitrust Law Compliance Rules
with an emphasis on rules when contacting competitor companies,
thereby improving the system to prevent violations from occurring.
Toyota Boshoku formulated a compliance manual and conducts
training globally that includes an Executive Legal Seminar and
training for relevant departments while related internal rules
have also been created at each site. The Company is therefore
deepening understanding of its stance toward antitrust laws, which
includes verifying operating conditions, and of cautionary points
in conducting business operations. In addition, the Antitrust Law
Compliance Rules were established mainly to regulate information
exchange with competitors and this forms part of a structure to
prevent infringements.
[Comprehensive efforts toward anti-bribery]
The Toyota Boshoku group is making efforts to increase
understanding of regulations in respective countries related
to preventing corruption such as bribery and is establishing a
Workplace discussion (TB Sewtech De Mexico)
■ CSR Management
29 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 30
Social Activities
framework for compliance. In fiscal 2015, the implementation
status of this framework was inspected globally and the necessary
corrections made in order to comply with the Anti-bribery Guideline
formulated in the previous fiscal year.
[Thoroughgoing export control]
The Toyota Boshoku group promotes activities in line with the
Export Compliance Programme (Export CP) in order to appropriately
implement security export control aimed at maintaining international
peace and safety.
Intellectual property managementThe Toyota Boshoku group respects the intellectual property of third
parties and appropriately values its own intellectual property, which
is viewed as a key management asset essential for global business
development. We continuously work to enhance the protection and
utilisation of our intellectual property.
[Aiming to strengthen patent application system]
The Toyota Boshoku group promotes initiatives to increase the
number of patent applications befitting the scale of business as well
as their quality. In this respect, we are working to boost motivation
toward the creation of inventions as well as vitalise application
activities through managing targets for the number of patent
applications by each technical division, in-house training and the
patent compensation system, as well as patent application support
activities from the intellectual property department. Particularly
in recent years, we are promoting application activities in Europe
and the United States as well as in the China region and emerging
countries in response to the globalisation of business activities.
In order to protect our intellectual property rights and prevent
infringement of other companies’ rights, in addition to enlightenment
mainly by providing information to designers on other companies’
patents that they should bear in mind, we also incorporated patent
assurance activities into project development processes as a means
of promoting initiatives to prevent the infringement of other
companies’ rights in each project.
In fiscal 2016, we will assign a person to promote patents in
each division of Toyota Boshoku and clarify their roles, and work
to strengthen cooperation between the intellectual property
department and respective divisions.
Confidentiality and information security management
The Toyota Boshoku group considers the appropriate management
of confidential information to be an important element of our
business activities. We seek optimal systems and frameworks
for managing confidential information in order to pursue sound
corporate activities.
[Strengthening organisation for security and enhancing
basic conduct]
The Toyota Boshoku group created a global confidentiality
management system to conduct confidentiality and information
security management. At Toyota Boshoku, in addition to
strengthening activities in conjunction with respective functional
divisions, we have assigned a person responsible for confidentiality
management and a person in charge of confidentiality management
within each division who can ascertain the weaknesses in each
workplace through on-site discussion. We are looking into
measures to mitigate confidentiality risk and are working to make
ameliorations and improvements. In regions outside Japan, RM&CH
undertook self-inspections using confidentiality risk standards
that match the characteristics of each region and we deployed in
sequence measures to resolve weak points at each site within a
region.
In fiscal 2015, we promoted activities to strengthen and improve
our framework by making a list of confidentiality-related risks on a
Toyota Boshoku group basis and worked to expand and enhance
education and awareness-raising efforts for each member.
Number of patent applications
FY2015 result
426 casesJapan 277 casesOutside Japan 149 cases
31 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 32
The Toyota Boshoku group is working to comprehensively
reinforce risk management via the creation of an effective
risk management system in order to respond swiftly to
management risk, risk in daily operations and other risks
such as disasters and accidents.
Risk management systemIn the Toyota Boshoku group, respective functional divisions factor in
initiatives to prevent and reduce various risks into their action plans
and promote activities accordingly. Although the CSR Committee
has evaluated risk management and conducted follow-up, the newly
established Risk Management Function Meeting was split off and
has been operating independently as of fiscal 2016 in order to
further strengthen activities.
[Preparing for large-scale natural disasters]
In the Toyota Boshoku group, we continually make improvements to
our business continuity plan (BCP) in preparation for a large-scale
natural disaster.
In fiscal 2015, the Japan region set up company-wide disaster
response headquarters at the Sanage, Kariya and Takaoka plants
and conducted integrated disaster drills at the same time company-
wide by assuming an actual disaster. Some 20 sites participated in
the drills, including each plant and Japan affiliates. Drills concerning
initial response by the company-wide disaster response headquarters
were conducted in connection with the company-wide disaster
drills while other drills were conducted with the aim of ensuring
swift resumption of production at plants as part of efforts to make
improvements and create a more effective BCP. In regions outside
Japan, we conducted focused disaster response drills at all RM&CH.
In addition, we are working to increase the efficiency of information
collection by employing a regionally uniform safety confirmation
system in the ASEAN region in addition to Japan.
Thorough reinforcement of risk management
Basic risk management policy
Endeavour to predict and prevent crisesGive maximum priority to assuring the safety of human life should a crisis occurShould a crisis occur, centralise information and promptly investigate the cause, respond appropriately and minimise damageIn case of significant social damage or impact, release information promptly in good faith
12
3
4Initial response drill by the company-wide disaster headquarters (Toyota Boshoku Sanage Plant)
Evacuating to a location outside in an integrated company disaster drill (Toyota Boshoku Kariya Plant)
■ CSR Management
■ Together with Customers
31 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 32
Social Activities
Together with Customers
The Toyota Boshoku group has an integrated system of design, manufacturing and sales and is
committed to production that prioritises safety and quality in order to provide high-quality, high
value-added and attractive products from the customer’s perspective and standpoint, thereby
inspiring and exciting customers.
In order to ensure the safety and quality of our products,
the Toyota Boshoku group has confirmed the fundamentals
of quality assurance in the three areas shown below and
is promoting education, training and awareness-raising
activities related to quality.
Promoting education, training and awareness-raising activities for quality
The Toyota Boshoku group conducts systematic education,
training and awareness-raising activities that can be shared and
built into the three domains of design, production engineering and
quality in order to ensure product quality and is also developing
professional human resources with regard to quality at an adequate
global level.
In fiscal 2015, we formulated a human resources development
plan based on a skills map that establishes the capabilities necessary
to be a supervisor related to quality, candidate for dispatch to
regions outside Japan and a future team leader in the workplace.
On the basis of securing the safety of customers and
delivering products that inspire, we are striving to enhance
the quality assurance system for the Toyota Boshoku group
on the back of integrated efforts by the Quality Assurance
Division, Global Quality General Control Department and
TQM Promotion Department in the quality field.
Reinforcing our global quality assurance systemThe Toyota Boshoku group, including group companies around the
world, is working to strengthen our quality assurance system.
At quality function meetings, global policy related to quality
management is formulated and key issues are discussed and
followed up on while determining the quality policy of each region
and its implementation status. Information is shared at the global
level to enable effective quality-related measures. The Company
is cooperating with each region to ascertain the status of quality
within regions and deploying initiatives toward achieving targets. In
fiscal 2015, audits were performed in each region for key processes
in an effort to make improvements while courses were given with
the aim of nurturing members able to audit these key processes.
Establishment of product auditing systemIn addition to safety assessments of individual automotive parts, it
is also necessary to respond to certification systems related to safety
in completed automobiles. The Toyota Boshoku group is maintaining
China Compulsory Certification, a safety standard for products
imported to China, and going forward, we will formulate an auditing
plan for important features in relevant legislation in respective
countries and regions and conduct auditing as required.
Expansion of ISO/TS 16949 certificationThe Toyota Boshoku group promotes acquisition of ISO/TS 16949
certification to manage and maintain quality assurance systems.
ISO/TS 16949 is the international standard related to a quality
management system that provides for defect prevention and the
reduction of variation and waste in the automotive supply chain.
In fiscal 2015, six plants at entities outside Japan were newly
certified, making a total of 69 plants with the certification.
Devise technical drawings that factor in quality
Create a process that guarantees the quality of drawings
Enhance quality in daily manufacturing operations
1
2
3
Enhance and strengthen quality assurance system
33 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 34
Enhanced production efficiency through process automation
Maintenance, production engineering and Kaizen groups united to conduct activities aimed at
implementing improvements, including process automation. Members regularly held interviews to
ascertain concerns in the workplace and generated ideas on ways to make improvements that even
involved cooperation from manufacturers. In fiscal 2015 alone we achieved automation in at least
10 processes. Further, we increased productivity while keeping investment to a minimum primarily
by creating as many different karakuri
mechanisms in-house as possible, and as a
result, we received the Gold Award in the
productivity category of the Toyota Boshoku
Global Awards* for fiscal 2015.
Members of the Kaizen team from Toyota Boshoku Filtration System (Thailand)
It was particularly hard to create karakuri
mechanisms in determining how to reduce
costs and make improvements. However, the
results we generated can be attributed to
united company efforts that saw all members
visiting the work site and taking part in a
series of investigative sessions that included
the president. Communication across divisions
and departments also increased, which
led to a rise in awareness of the need for
improvements throughout the organisation.
Repeated investigative and instruction sessions were conducted on-site.
Thailand
* Toyota Boshoku Global Awards: Annual awards presented for outstanding activities and to business entities and plants in the Toyota Boshoku group that have achieved significant results in such categories as productivity, safety and quality
The Toyota Boshoku group deploys quality-related
activities to realise safety and comfort for customers who
drive cars as well as automakers.
Prevention of significant quality issuesThe Toyota Boshoku group is implementing 5N activities globally for
all parts earmarked for commercialisation and is working to further
advance skills in order to prevent major quality deficiencies and
claims.
5N activities, one of the most important initiatives with regard to
preventing quality issues, identify areas that are either new or have
been modified in the design of a new product or process from five
perspectives: structure, materials, manufacturing method, processing
and application. This approach helps to thoroughly eliminate any
deficiencies in advance. For instance, if a totally new material is
slated for use, it is set and registered as a product subject to 5N
activities. Development, production engineering, procurement and
quality divisions then work together to prevent deficiencies in key
areas of quality through evaluation and verification activities. The
implementation status of 5N activities is evaluated at a production
transfer meeting held at each stage. Products for which these
activities have not been completed do not make it to market.
Design and process development to prevent defects in products
The Toyota Boshoku group is undertaking efforts on a daily basis
in design and process development to prevent defects both inside
the organisation and at suppliers. In fiscal 2015, we set up a model
line toward the establishment of a work manual so that anyone
can produce good quality products and conducted inspection of
the manual and compliance with its provisions as we continue to
promote activities that serve to raise quality.
Swift discovery and response to defects in products in the market
Toyota Boshoku promotes activities aimed at swift discovery and
response to serious defects in products in the global market. Defects
with a high propensity to cause harm, which occur frequently or
may impact the market, are classified by level of importance and
registered. Countermeasures are then implemented in line with a set
deadline based on comprehensive follow-up procedures. Clear rules
are defined for defects designated with a high ranking, including
Deployment of quality-related activities
■ Together with Customers
33 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 34
Social Activities
In SQC activities, training
is conducted according to
introductory-level, intermediate-
level and advanced-level job
classifications and is used
to help resolve issues and
problems. This promotes the
sharing of activity results via presentations and serves to advance
knowledge and technologies related to quality. As a means to
determine the results of these activities and assess individual
capabilities, we urge members engaged in quality-related fields to
undergo the QM/QC Examination so we can continuously foster
professional human resources in this area.
Consumer responseIn order to protect the rights of customers using our products, the
Toyota Boshoku group cooperates with automakers to quickly
respond when receiving claims for automobile components, thereby
ensuring repair, replacement and other appropriate service. As for
products besides car components, we are responding to various
customer needs as well.
countermeasures, the deadline for implementation and method of
implementation, thereby enabling a swift response. In fiscal 2016,
we will continue making an analytical system for defective parts in
the frame that have been newly added to Toyota Boshoku parts in
line with consolidation of the seat frame component business.
Promotion of QC Circle / SQC activitiesAs part of Total Quality Management (TQM) activities, the Toyota
Boshoku group conducts Quality Control (QC) Circle activities for
members with technical skills and Statistical Quality Control (SQC)
activities for members with administrative and engineering skills.
As for QC Circle activities, in addition to tier-based training
for leaders, advisors and supervisors, the QC Circle Promotion
and Operational Case Study presentation is held in Japan as an
occasion for presenting activity results. The All Toyota Boshoku QC
Circle presentation is also held annually to present global activities,
in which circles that have won in preliminary competitions in
respective regions worldwide including Japan participate and make
presentations. As an example of interchange with a country outside
Japan, in the preliminary competitions in the Asia & Oceania region,
the TQM Promotion Department took the lead in providing guidance
on how to prepare materials and offering advice on all of the cases
presented, which served to further enhance the level of results.
Learning about SQC using actual cases
Guangzhou Intex Auto Parts shines with GOOD FACTORY AwardGuangzhou Intex Auto Parts, Toyota Boshoku
group’s production company in China, won the
GOOD FACTORY Award for fiscal 2015 issued by
the Japan Management Association. This company
has clarified the steps required to reach its ideal
condition led by local members and is promoting
initiatives to raise quality with local suppliers based
on the theme “manufacturing process innovation
undertaken together with suppliers.” As a result
of these activities, Guangzhou Intex Auto Parts was recognised for reducing
products with defects delivered and received the Manufacturing Process
Innovation Award. * This award recognises factories that generate exceptional results in activities related to structural
innovation such as increasing productivity or quality and covers Japanese companies in Japan and the Asia region.
Members of the project promotion team (from left):
Yinhuan Lu, Zhiyong Chen and Li Wang
The award has contributed to an awareness of the need
to further increase quality among suppliers as well as personnel at
Guangzhou Intex Auto Parts and has also given us more confidence at work. Going forward, we will set even higher
targets and take the steps needed to make improvements.
ISO/TS 16949 certified entities
FY2014 result
63plants
FY2015 result
69plants
35 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 36
also conduct a survey for members that focuses on morals, with the
results reflected in corporate policy.
[Stable employment with fair and honest evaluations and
working conditions]
Labour and management constantly exchange opinions through
such occasions as the Labour-Management Council in an effort to
ensure stable employment in which layoffs are duly given careful
consideration and to maintain and steadily improve working
conditions from a mid- and long-term perspective. In addition,
we promote the development of human resources by conducting
evaluations that use standards reflecting Toyota Boshoku’s values
and also implement fair and honest policies for all members.
[Secure and foster the most appropriate human resources]
Our recruitment activities are based on a medium- to long-term plan
that takes into account such aspects as the current composition of
members, management strategy and environment changes with the
aim of securing the most appropriate human resources globally. We
endeavour to recruit diverse human resources and deploy our human
resources development policies on a global scale.
The Toyota Boshoku group has codified its corporate
philosophy and set of values to be shared by each member
in the TB Way. Each member endeavours to create a bright,
enjoyable and motivating work environment so that we
can maximise diverse individuality and everyone can work
to his or her full potential and satisfaction.
Building relations of mutual trust and responsibility between labour and management
The Toyota Boshoku group believes that the Company’s continuous
progress results in the greater satisfaction of members. We aim
to foster labour-management relations built on mutual trust, in
which everyone is working to fulfil their responsibilities for a more
prosperous society.
Mutual understanding through proper communication
The Toyota Boshoku group is taking steps to create good labour-
management relations. We are deepening mutual understanding and
trust through such occasions as labour-management round-table
discussions. Additionally, labour and management utilise various
committees and sub-committees to discuss a wide range of topics,
including pay, welfare and benefits, work policies, production and
safety, and are striving to create a safe, motivating workplace. We
Together with Company Members
Motivated and vibrant workers lead to growth of the individual and growth of the entire
company. We are seeking to create a company in which everyone feels encouraged by
increasing the quality of communication between supervisors and subordinates and pursuing
challenges and making improvements.
Creating workplace environment where members can work with trust in the company
Establish a relationship of mutual trust and respect
Mutual understanding throughthorough communication
• Share common values• Share awareness and sense of critical urgency
• Ensure stable employment in which layoffs are duly given careful consideration
• Maintain and steadily improve working conditions from mid- and long-term perspective
• Ensure Fairness and Consistency• Secure and train best-suited persons• Safe working environment
Creating workplace environment where members can work with trust in the company
• Affirmative and proactive support of company policies• Maximise team performance and achieve satisfactory outcomes
Affirmative and proactive cooperation in company activities
CompanyGrowth and
ProsperityImprovement in productivity
MemberStability and
Improvement of livelihood
Self-fulfilment and growth
Basic concept of Human Resources Management (HRM)
■ Together with Company Members
35 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 36
Social Activities
we will strengthen initiatives aimed at achieving the statutory 2.0%
employment rate of persons with disabilities.
Promoting active roles for female membersThe Toyota Boshoku group actively takes steps to empower women
in the workplace. Examples include training to promote a change in
awareness among women and management, formulating a medium-
term career plan for each individual and preparing development plans
for women as assistant managers based on a voluntary action plan*
to encourage more active roles among female members at work that
was formulated in fiscal 2014.
Supporting the balance of work and childcare / nursing care
Toyota Boshoku has abolished non-scheduled working hours and
introduced a nursing care leave system while creating a workplace
environment that encourages people to use these systems.
From fiscal 2016, we expanded application of a flexible schedule
system to members on shortened work hours. This has enabled more
diverse work styles. The Company operates group day nursery and day
care centres on premises as well as infant day care centres for members
in cooperation with five Toyota Group companies. These and other
initiatives support the balance of work and childcare / nursing care.
Employment rate of persons with disabilities [Toyota Boshoku]
Fiscal year 2011 2012 2013 2014 2015
Employment rate of persons with disabilities (%) 1.83 1.75 1.85 1.89 1.90
The Toyota Boshoku group respects the individuality
and capabilities of each individual since promoting
diversity is key to corporate growth. With this in mind,
we are working to provide a work environment where
members can continue to work with enthusiasm by
minimising limitations in work so that everyone can exert
their full potential. Although history, culture, laws and
social customs differ by country or region, all members,
understand that fundamental philosophies are shared and
constant and thus act in accordance with this basic idea.
Galvanising global human resourcesThe Toyota Boshoku group works to enhance the global awareness
of members and recruits exceptional and talented human resources
irrespective of nationality. We formulated basic rules concerning
conditions for transferring across countries and regions as the Global
Mobility Policy and we are looking to permeate and firmly establish
this system in each region in order to further promote the exchange
of global human resources.
Encouraging employment of persons with disabilitiesToyota Boshoku and Japan affiliates are working to create an
environment that is easy to work in for members with disabilities so
they can play active roles in different positions at the Toyota Boshoku
group. This includes increasing the number of workplaces employing
persons with disabilities, expanding the number of assistants per site
and barrier-free facilities, and identifying new workplaces in which
members with disabilities can take on active roles. Going forward,
Respecting diversity
* Toyota Boshoku aims to increase the number of women in managerial roles by two-fold in 2020 and five-fold in 2030 compared with 2014.
The Toyota Boshoku group strives to ensure that the
individuality and humanity of our members is respected in
accordance with our corporate philosophy and the TB Way.
Initiatives to safeguard members’ human rightsWe do not advocate discrimination, defamation or other such
improper conduct based on race, gender, age, nationality, religion,
disability, sickness or injury. As a global corporate group, we strictly
respect the laws and social regulations of other countries and
regions, as well as forbid the use of child or forced labour.
Full respect for human rights
37 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 38
system (Global Trainee System) is also actively being implemented
within the Toyota Boshoku group so that members attain a more
global outlook as well as foreign language ability by experiencing
work in a different country.
[Specialised skills related education]
Toyota Boshoku uses its Technical Skills Development Promotion
Division as a centre for enhancing and passing on manufacturing
skills globally. Here, we are working to “foster exceptional
supervisors,” “establish excellent manufacturing skills,” “strengthen
maintenance skills,” “nurture human resources who can act with
appropriate levels of safety” and “nurture core young human
resources” in order to develop human resources and enhance
workplace capabilities to enable the highest levels in terms of safety,
quality and delivery.
In terms of fostering exceptional supervisors, we conduct
training for such members globally as well as promote creating an
environment in which each region can implement basic skills training
and Maintenance Training on their own. As an example, in the
China region, unique training has been conducted that also makes
use of the Technical Skills Training Centre, which includes specialist
training on sewing machines and sewing techniques. In addition,
we will provide logistics and engineering training from fiscal 2016
for members scheduled for dispatch and engineering staff at plants
in response to growing needs to learn basic knowledge related to
production management and logistics in regions outside Japan.
The Toyota Boshoku group aims to ensure that all
company members in many parts of the world understand
and implement the values, stance and action outlined in
the TB Way. Meeting challenges, continuously carrying
out kaizen, practicing genchi-genbutsu (Go, see & study),
respecting individuality, pursuing the root cause and
ensuring implementation from start to finish are also part
of the TB Way.
Nurturing of global leadersThe Toyota Boshoku group
nurtures management-
oriented human resources
that can be active
globally, transcending
country and business
entity barriers, and is
working to create an appealing company that attracts exceptional
people from around the world.
In fiscal 2015, we launched a Regional Succession Committee in
each region that devised and implemented a management-oriented
human resources development plan for the future. We also continue
to provide Global Leader Training, a special education programme
as part of our efforts to identify and develop candidates for global
leaders.
Global development of human resources training programme
In order to foster human resources who learn the philosophy, work
style and capabilities of the Toyota Boshoku group and who can
work across borders, irrespective of location around the world, we
are working to develop people (Master Trainers) in each region who
can teach educational content GCC* that should be learned by all
members throughout the Toyota Boshoku group.
Additionally, skill-up training has been provided to Master Trainers
who are active in each region in an effort to firmly establish and
further enhance GCC. A short-term (1-2 years) personnel transfer
Global Leader Training
Master Trainers
Global HR Development Division, Global Mainstay Hub
Foster and assign trainers in each region
Trainers in each region provide education at RM&CH / business entities
Strengthen global deployment of GCC
* Global Core Contents: TB Way, Problem solving, OJT / OJD, Hoshin Kanri (Policy management)
Promotion of human resources development
Number of participants of Global Trainee
FY2015 result
65Japan 48Outside Japan 17
■ Together with Company Members
37 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 38
Social Activities
The Toyota Boshoku group implements safety and health
activities as labour-management cooperative efforts under a
Basic Safety and Health Policy
In order to establish a corporate culture of safety first, we declare
that we will not produce, handle, transport or dispose of products or
materials unless people’s safety, health and environment are protected.
Safety Culture Vision
We will pursue family-oriented fine customs as the root of the Toyota
Group’s founding and strive as one globally to ensure a culture of safety
with zero accidents by providing safe interior vehicle spaces at a world-
class level that satisfy all customers.
Developing highly safety-conscious human resources
In the Toyota Boshoku group, we are taking on activities to raise safety awareness with the objective of establishing
workplaces in which members can work safely and with peace of mind. We have been creative with our educational
content alongside the different needs at each site so that all members actively participate in safety-related activities.
Tianjin Feng’ai Automotive Seat Parts regularly analyses examples of industrial accidents that have occurred at other
companies through its safety managers and visualises measures to prevent such incidents. In addition to raising sensitivity
to danger among members through repeated team discussions regarding issues in each process, the company is working
to create an environment in which members feel free to provide advice and warning to each other.
TBMECA Poland has been enhancing and expanding its educational content since fiscal 2014 as well, particularly in
terms of teaching safe work methods based on chemical substance management and ergonomics. Further, the company
holds a safety knowledge contest twice a year during designated Safety Months in an effort to raise safety awareness so
that members can deepen safety-related knowledge and act in a safe manner of their own accord.
On-site safety inspection (Tianjin Feng’ai)
Safety-related workshop (TBMECA)
China Poland
Number of participants in
skills competition
FY2015 result
208Japan 161Outside Japan 47
In terms of establishing excellent manufacturing skills, we make
sure that our members are highly skilled by way of basic skills
training, Karakuri Training courses on techniques to drive precision
workmanship and mechanisms using threads, springs and hydraulic
power, and taking part in Worldskills Competitions and the All TB
Skills Competition.
The Karakuri Training that started in fiscal 2015 will be segmented
in terms of content from fiscal 2016 with the aim of promoting
implementation and further enhancing workplace competencies. We
are expanding and enhancing the training so that more members
gain an insight into and learn from karakuri improvements.
A total of 208 members, including 47 participants from 15
countries outside Japan, pitted their manufacturing skills against one
another in the All TB Skills Competition for fiscal 2015.
In terms of strengthening maintenance skills, we are striving to
improve these skills through 33 short courses for specialised skills such
Promoting safety and health and health building
as mechanical systems, electrical systems and mould maintenance, as
well as by making use of Maintenance Training comprising from two
weeks to three months in accordance with needs.
In terms of nurturing human resources who can act with
appropriate levels of safety, we are working to enhance company
members’ sensitivity toward risks at the Safety Sensation Dojo
(Simulated Accident Dojo) and develop members capable of taking
appropriate levels of safety on their own.
In addition, at the Toyota Boshoku Technical Skills Academy, we
promote the development of young members who are balanced
in “mind, body and spirit” and capable of operating at a global
level and who will be core to the organisation. In 2016, we started
accepting students for the academy from outside Japan for the first
time and currently one young member from Taiwan is learning with
the other members.
Basic Safety and Health Policy in order to establish a corporate
culture that places a priority on safety and health at work.
■ Together with Company Members
39 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 40
management system based on survey findings in The Americas
region. We received outside consulting and aim to build up a system
of continual improvement befitting regional culture and customs,
and create an even more advanced and mutually enlightened culture
of safety.
Promoting healthy human resources and instilling a culture of health
The Toyota Boshoku group is taking steps to ensure the health of
all company members and to create and instill a culture of health
so that everyone can be healthy and energetic, both mentally and
physically, not only while they are working but also after retirement.
To achieve this, we are supporting the health of all members from
both physical and mental perspectives through an integrated system
of industrial physicians and staff promoting health.
[Conducting health checks for all members]
We are undertaking activities toward the implementation of health
checks for 100% of members in all regions, not just those regions
where checks are mandatory by law, so that all Toyota Boshoku
group members can receive health checks.
Creation of global management of occupational safety and health activities
Creating a safe work environment is a priority issue for companies
and local communities. With this in mind, the Toyota Boshoku group
works to enhance safety and health at work through activities based
on an Occupation Safety & Health Management System (OSHMS).
Toyota Boshoku has incorporated operating rules into internal
safety and health standards and expanded these standards to
all work sites, including administrative and technical groups. The
aim is to promote the building of a culture of safety by evaluating
initiatives based on the results of audits and eliminating weaknesses
and other measures. In addition, we made a handbook (Japanese
and English versions) of safety standards that should be shared
throughout the group and distributed it to members in all regions.
In fiscal 2015, we clarified inspection requirements for STOP6*1,
such as being caught and being pulled in equipment or coming in
contact with heavy objects, and conducted safety inspections to
create workplaces where there are absolutely no major accidents
(fatalities). We also took steps to establish risk assessment
procedures worldwide.
[Efforts to build a mutually enlightened culture of safety]
The Toyota Boshoku group
promotes health and safety
activities aimed at achieving
zero industrial accidents. We
also systemise our safety
education programme and
conduct education locally
through Toyota Boshoku
persons in charge in each region in order to create and establish a
mutually enlightened culture of safety. During Global Week*2 held
in April each year, a global safety conference is conducted with
participation by management from all regions to advance human
resources development worldwide aimed at eliminating major
accidents.
In fiscal 2015, we started activities to raise the level of our safety
(CY)2011
1.50
1.00
0.50
0.002012 2013 2014 2015
Toyota BoshokuJapan affiliatesGroup companies in other regions
Japan’s transportation equipment manufacturing industry
Average of Japan’s manufacturing industry
0.51
0.230.25 0.15 0.21
0.39
1.26 1.321.16
0.78
0.48
0.42
0.47 0.51
0.41
1.05 1.00 0.941.06
1.06
0.17 0.15 0.15 0.10 0.05
Rate of lost work time injuries
*2 A week in which executive officers, division general managers, site managers and representatives from other entities gather together for discussions as a group in a way that transcends regional and functional frameworks
Safety awareness survey by interactive questionnaire
*1 S:Safety T: Toyota O: 0 (Zero Accident) P: Project 6: 6 items (Being caught in machines, coming in contact with heavy objects, coming in contact with vehicles, falling, electrocution and coming in contact with heated objects)
■ Together with Shareholders and Investors
39 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 40
Social Activities
Together with Shareholders and Investors
The Toyota Boshoku group actively promotes efforts to disclose information and
communicate in an appropriate and timely manner so as to earn the trust and support of
shareholders and investors.
The Toyota Boshoku group has stated in our disclosure
policy that we are committed to “disclosing information
required by shareholders, investors, business partners and
local communities in a timely and appropriate manner as
well as to carrying out public information-sharing activities
that earn the trust of society.” In this sense, we are striving
to disclose information in an accurate, timely and fair
manner. In order to ensure the appropriate disclosure of
information, we strictly manage corporate information
and are working actively on disclosure in the Information
Disclosure Committee, which is comprised of members
from Toyota Boshoku’s External Affairs & Public Relations
Division, Accounting & Finance Division, Legal Division and
the Corporate Planning Division.
Fiscal 2015 distribution of profitsBusiness results for fiscal 2015 are shown on pages 61 and 62.
In continuing to place priority on providing shareholders with
long-term stable dividends, annual cash dividends of 30 yen per
share were paid for the current fiscal year.
Briefings for shareholders and investorsThe Toyota Boshoku group regularly holds results briefings with the
Company president and executive officers in order to aid analysts
and institutional investors in understanding Toyota Boshoku’s
financial situation and business strategies. In September 2015,
we held a round-table conference with analysts to deepen their
understanding of the new president and our future management.
This included a Q&A session with the president and executive
vice presidents and a tour of the Sanage Plant. Additionally, we
are actively pursuing
communication with
shareholders and
investors through various
occasions, including small
meetings and interviews
with analysts and
Enhancement of corporate value and reinforcement of information disclosure
institutional investors as well as visiting institutional investors.
In fiscal 2016, we are planning to take part in conferences and
hold individual meetings for institutional investors outside Japan
as well as seminars for individual investors. In addition, we plan
to hold tours of plants and facilities with the aim of furthering
understanding of Toyota Boshoku’s business activities among
investors.
Plant tours for shareholdersWe hold tours of our
plants and facilities to
deepen understanding of
the Toyota Boshoku group
among shareholders.
In fiscal 2015, we
showed around 80
people the processes for
seats, door trim and other products at our Sanage Plant on the day
of the Annual General Meeting of Shareholders in June.
Disseminating information through our websiteThe Toyota Boshoku group posts important information in a timely
manner on our website including an introduction of our business,
press releases and financial results briefing materials.
We are working to expand and enhance our information
disclosure items in English on our global website (http://www.
toyota-boshoku.com/global) as a means to further deepen
understanding of the Toyota Boshoku group among shareholders
and investors worldwide. In line with this, we are also striving to
enhance information disclosure and disclose information in a timely
and fair manner on our regional websites (Japan, The Americas, Asia
& Oceania, China and Europe & Africa).
Financial results briefings (Tokyo)
Plant tours for shareholders (Sanage Plant)
41 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 42
Promoting procurement activities that consider human rights
As a means to strengthen its CSR activities, Toyota Boshoku requests
the following for its basic supplier agreements: (1) Respect of human
rights and building awareness of social responsibility in the supply
chain; (2) Prohibiting bribery; (3) Ensuring fair transactions; and (4)
Removing antisocial forces. In fiscal 2014, we completed the update
of all supplier agreements in Japan.
Moreover, we continue to respond to regulatory issues concerning
conflict minerals that are broad matters of concern in the automobile
industry, and we are conducting surveys by going back along
secondary and tertiary suppliers every year.
Green procurement and green purchasingThe Toyota Boshoku group is strengthening its response to
legal compliance related to various environmental regulations
in respective countries and regions, including the global REACH
Regulation*, based on our Green Purchasing Guideline , and
we are working actively to reduce environmental burden with all
suppliers.
[Building of environmental management systems (EMS) at
suppliers]
The Toyota Boshoku group promotes environmental preservation
activities in collaboration with suppliers aimed at creating a
sustainable society. Toyota Boshoku requires its suppliers to establish
EMS based on the acquisition of ISO certification. As a result, in fiscal
2015, all 87 major suppliers have acquired ISO 14001 certification.
Together with Suppliers
Using fair and equitable procedures, the Toyota Boshoku group purchases parts, raw materials
and equipment from a large number of suppliers throughout the world. Together, we will
grow by putting into practice the spirit of a win-win relationship while fulfilling our social
responsibilities in the supply chain.
In addition to conducting procurement activities based on
a basic procurement policy, the Toyota Boshoku group will
meet rising demand for CSR activities in the supply chain
as business expands.
Strengthening CSR in the supply chainThe Toyota Boshoku group code of conduct specifies a code of
behaviour for procurement activities that achieve trust and respect.
Members of the Toyota Boshoku group pledge to act in accordance
with these guidelines. We have established compliance themes for
important areas and drawn up action plans to promote initiatives for
legal compliance.
In terms of actual procurement, we have decided on action
themes and plans for each priority area and are promoting initiatives
aimed at strengthening CSR throughout the supply chain. This
includes complying with laws and regulations pertaining to antitrust
laws, subcontracting laws, labour laws and the environment in Japan
as well as similar laws and regulations in regions outside Japan.
We also seek to contribute to local communities and create a risk
management system for large-scale disasters.
In fiscal 2015, at the General Meeting of Global Suppliers, we
requested Toyota Boshoku’s major suppliers (approximately 100
companies) to work on quality assurance in the supply chain,
including secondary and tertiary suppliers, production preparations
and appropriate preparations for safety and major disasters as key
themes. In addition, we held lecture presentations with the theme of
developing CSR in the supply chain.
Open, fair and transparent trade and implementation of CSR activities in the supply chain
ISO 14001 certification acquisition
Fiscal year 2012 2013 2014 2015Supplier companies 88 87 87 87Certified companies 83 86 87 87Certification rate (%) 94 99 100 100
Basic procurement policy
Open and Fair Transactions
Mutual Development through Mutual Trust
Promotion of “Green Purchasing”
Promotion of Local Purchasing as a Good Corporate Citizen
Law-abidingness and maintaining Confidentiality
12345
Web
Web
* A regulation on “Registration, Evaluation, Authorisation and Restriction of Chemicals” enforced in Europe
■ Together with Suppliers
41 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 42
Social Activities
time. Moreover, we launched a cost benchmark system related to
components and raw materials that is connected with TB-WAVE on
a global scale. This is being deployed to respective regions while
dealing with any operational issues.
Deployment of global Supplier Parts Tracking Team (SPTT) activities
In deploying global operations, it is becoming increasingly important
to strengthen and expand ties with suppliers regarding materials,
parts, equipment and other items when setting up new production
lines and launching new products.
The Toyota Boshoku group is promoting activities to assure the
quality of its products by helping suppliers in other regions enhance
their production processes, from beginning with the production
preparation stage to getting their businesses on track after the
launch of new products.
Such actions, referred to as global SPTT activities, help create
face-to-face ties between suppliers and members of various
divisions, including procurement, design and quality control, as well
as enable problem solving and mutual benefits via genchi-genbutsu
from different perspectives, notably in such areas as quality, amount,
price, distribution and timely delivery.
In fiscal 2015, we continuously placed emphasis on preventing
problems in quality and manufacturing and production preparation
by building bridges from developed to developing nations in addition
to conducting the activities in each country. To this end, we realised
the smooth start-up of production activities in Thailand, Indonesia,
India and Argentina to South Africa.
We also worked to nurture human resources who can promote
SPTT activities in each region. In fiscal 2015, we held meetings on
global SPTT activities in which we shared global and local issues and
discussed initiatives.
As business becomes more global in nature, the Toyota
Boshoku group is working as a whole to promote local
procurement and realise optimal global procurement
together with suppliers, giving due consideration to all
aspects such as quality, safety and cost.
Annual Supplier MeetingEvery year, a Global Annual Supplier Meeting and Annual Supplier
Meeting in each region are held for Toyota Boshoku group principal
suppliers to explain the surrounding business environment and
the group’s current direction. This is held in order to deepen
communication with suppliers and gain their understanding and
cooperation regarding procurement policy.
In fiscal 2015, we pushed ahead with preparations to establish this
framework in each region with a view to inviting excellent suppliers
from each region to the Toyota Boshoku Global Annual Supplier
Meeting to be held in 2018. In China, we held general meetings in
Guangzhou in addition to Chengdu.
Creation of a cohesive global procurement systemThe Toyota Boshoku group is creating a global procurement
system and is working to deepen connections with all suppliers.
As a fundamental system to standardise procurement information
from respective countries worldwide, a unit price database for
components and raw materials called TB-WAVE has been rolled
out to such entities as ASEAN and Europe & Africa for the first
Creation of a global procurement system
Annual Supplier Meeting in Japan Awards presentation ceremony at the Annual Supplier Meeting at Toyota Boshoku Asia
Reinforcing risk management in the supply chain
Toyota Boshoku operates a supplier safety confirmation system at
times of large-scale disaster and encourages the formulation of
BCPs as part of efforts to strengthen risk management in the supply
chain. In fiscal 2015, we roughly doubled the number of suppliers
subject to the supplier safety confirmation system as we further
expand the scope.
43 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 44
Together with Global Society & Local Communities
The Toyota Boshoku group will implement social contribution activities in response to local issues
based on our shared corporate philosophy in which we endeavour to promote corporate growth
while fulfiling our responsibilities as a good corporate citizen.
Thailand
Conducted tree-planting activities in Rayon Province.
Boshoku Automotive (Thailand)
Vietnam
Cleaned up a local tourist area.
Toyota Boshoku Hanoi
Turkey
Implemented tree-planting activities in Sakarya Province.
Toyota Boshoku Turkey
France
Donated to a local social support organisation.
Toyota Boshoku Somain
U.S.A.
Cooperated with a programme to grow vegetables run by a social welfare organisation.
TBDN Tennessee
Brazil
Planted around 200 fruit trees, etc., around the company.
Toyota Boshoku Do Brasil
Argentina
Interacted with children at a local children’s facility.
Toyota Boshoku Argentina
Russia
Conducted fund-raising activities and used the proceeds to get presents for children in an orphanage.
TOYOTA BOSHOKU in RussiaGlobal social contribution activities
The Toyota Boshoku group hopes to continue as a trusted company.
In this way, we can build strong bonds with local communities and
promote environmental activities. This section includes some of the
activities we are undertaking in each region.
Activities with local citizens Environmental activities
Activities with local citizens Environmental activities Foster youth through education
Toyota Boshoku group areas of focus
(see page 59)
■ Together with Global Society & Local Communities
43 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 44
Social Activities
CSR regional team leaders at Toyota Boshoku Kentucky (from left):
Julie Mullins, Rebecca Greenwell, Mike French, Lorrie Collier
Community-based social contribution activities
We promote community-based activities in conjunction with NPOs
in such areas as youth development, education, welfare and the
environment. In addition to continued fund-raising and volunteer
activities, we provide food relief to victims of natural disasters and
those less fortunate and support education in high schools. While
these and other efforts help local needs, company members also
devise their own plans and carry out activities. Our initiatives were
recognised with the Gold Award in the social contribution category
of the Toyota Boshoku Global Awards for fiscal 2015.
Team members come up with ways the company can lend a hand to
resolve local challenges. More than 20 activities were added in fiscal
2014 that we started tackling this fiscal year. We put guidelines for
applications and the results of activities on a noticeboard inside the
company, which has served to
steadily raise member interest.
The number of participants in
social contribution activities
and the total amount of money
raised have grown significantly
compared with fiscal 2014.
We will continue pouring efforts into youth development activities,
including planning programmes in which local children can learn
about the manufacturing business.
Preparing presents for local children
Held a woodworking class using tree trimmings with students from a special needs class.
Toyota Boshoku
Japan
Participated in local cleanup activities.
Toyota Boshoku Tohoku
Taiwan
Gave Christmas cards to children affected by the Great East Japan Earthquake.
Shin San Shing
China
Conducted local cleanup activities.
Heyuan Toyota Boshoku Automotive Parts
Gave fruits to a local orphanage.
Kunshan Toyota Boshoku Automotive Parts
Planted 14,420 trees in four years to prevent desertification in Inner Mongolia.
Toyota Boshoku (China)
Foster youth through education
The Toyota Boshoku group wants to help the children of the world and is pushing ahead with programmes to support children’s sound development.
[Strengthened club activities]
Toyota Boshoku Kyushu Handball Team holds handball classes for
children from a children’s facility nearby and personally gives the children
Christmas presents. The team endeavours to deepen exchange by inviting
the children to league matches. The children cheer on team members and
give them a sense of courage.
U.S.A.
Personal connection with a smile
45 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 46
Formulated 2050 Environmental Vision
Aiming for a Sustainable Global Environment for Our Children
The Toyota Boshoku group recently formulated its 2050 Environmental Vision based on the belief that it is
necessary to take a long-term perspective toward environmental issues and tackle them at an even higher
level. The vision establishes six Stretch Environmental Goals to be realised by 2050, including the challenge of
achieving zero CO2 emissions in business activities. At the same time, we have initiated new activities in line
with our 2020 Environmental Action Plan, which is a medium-term plan of action aimed at realising the vision.
Humankind is currently facing numerous environmental challenges including climate change, water scarcity,
resource depletion and a biodiversity crisis. In particular, global warming has reached a critical level. In light of
these issues, the international accord concerning climate change known as the Paris Agreement was adopted
at the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate
Change (COP21) in December 2015 aimed at keeping the global average temperature increase to well below 2˚C
and to pursue efforts to limit it to 1.5˚C above pre-industrial levels. The agreement included the target of zero
greenhouse gas (GHG) emissions due to human activity in the second half of this century and monitoring the
global situation and revising targets every five years. In response to this, the Toyota Boshoku group will set very
challenging targets under the 2050 Environmental Vision and continue to revise our action plan every five years.
The Toyota Boshoku group will work together with all stakeholders with the aim of creating a sustainable
global environment where children can lead their lives with a smile.
Director, Executive Managing OfficerField General Manager, Safety, Health & Environmental Field
Tokuji Yamauchi
■ Formulated 2050 Environmental Vision
45 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 46
Environmental
Activities
Formulated 2050 Environmental Vision
Formulated 2020 Environmental Action Plan Based on the 2050 Environmental Vision
We will work together with all stakeholders with the aim of creating a sustainable global environment where children can lead their lives with a smile.
2050Environmental
Vision
2050 Environmental Vision (6 Stretch Environmental Goals) Action items for 2020 Environmental Action Plan
1Promote the development of innovative production technology with low CO2 emissions
2 Promote the use of renewable energy suitable for individual countries and regions
3Study the possibility of utilising next generation energy within the company, and define the mid- to long-term outlook for the utilisation of such energy
4 Minimise the CO2 emissions in daily production activities
5 Product development that contributes to top-level fuel efficiency
6 Promote product development to support next generation automobiles
7 Develop and commercialise products using plant-derived materials
8 Reduce CO2 emissions through the pursuit of efficient logistics activities
9 Reduce the amount of water used in production activities and wastewater
10Reduce the use of fossil fuel resources through the utilisation of plant-derived raw materials
11Reduce the amount of waste generated in production activities and promote the effective use of resources
12Reduce the amount of packaging materials used in logistics activities and effective use of resources
13Promote environmental social contribution programmes through forest-creating activities / forest conservation activities
Management
14 Promote the reinforcement of the consolidated environmental management
15 Strengthen the chemical substance management system
16 Reduce the VOC* emissions from production activities
17 Promote environmental activities in collaboration with business partners (suppliers)
18 Promote environmental management in product development
19 Strengthen environmental education to pass the environmental conservation activities on to future generations
20 Enhance communication with stakeholders through active disclosure of environmental information
Challenge of achieving zero CO2 emissions in the Toyota Boshoku group1
The Toyota Boshoku group will take on the challenge of “achieving zero CO2 emissions from all of our plants by 2050.” We will strive to reduce CO2 emissions significantly through the development of innovative production technology, the development of products and material engineering, the improvement of plants and the utilisation of renewable / next generation energy.
Instead of focusing only on the reduction of CO2 emissions during our auto parts production process, Toyota Boshoku will take on the challenge of “achieving zero CO2 emissions” in all stages of product life cycle from production to use, disposal and recycling of products.
Challenge of achieving zero CO2 emissions in the product life cycle2
The Toyota Boshoku group currently uses water in product cleaning and painting processes. Moving forward, we will take on the challenge of “achieving zero wastewater in the Toyota Boshoku group production processes by water recycling” through the establishment of a circulation system by replacing the existing processes with water-less process, purifying and recycling wastewater as well as using rainwater.
Challenge of achieving zero wastewater in the Toyota Boshoku group production processes by water recycling
3
The Toyota Boshoku group will take on the challenge of “minimising natural resources usage” through the promotion of readily disassemblable and recyclable design, the development of recycling technologies to realise a material cycle and the replacement of materials with a wider range of plant-derived materials.
Challenge of minimising natural resources usage4
The Toyota Boshoku group will take on the challenge of “minimising wastes produced by the Toyota Boshoku group” and embarking on various efforts including the design and method development enabling efficient use of resources, the development of recycling technologies and 100% material recycling (to make parts from parts).
Challenge of minimising wastes produced by the Toyota Boshoku group5
Toyota Boshoku will take on the challenge of “planting 1.32 million trees as part of reforestation activities” by harnessing its group network to contribute to the habitat conservation for endemic species in individual regions and countries, the protection of forests and the restoration of abundant habitats.
Challenge of planting 1.32 million trees as part of reforestation activities6
Esta
blis
hmen
t of
Low
Car
bon
Soci
ety
(Clim
ate
Chan
ge, C
O2)
Esta
blis
hmen
t of
Rec
yclin
g-ba
sed
Soci
ety
(Wat
er &
Res
ourc
es)
Esta
blis
hmen
t of
Sy
mbi
otic
Soc
iety
(B
iodi
vers
ity)
Man
agem
ent
From the 2020 Environmental Action Plan, the Toyota Boshoku group will use production volume instead of sales, which is susceptible to external factors, for the denominator of intensity performance metrics used to manage the action items 1-7 and 11 so that improvements are more accurately measured. Likewise, the calculation method for CO2 emissions from logistics (item 8) will be revised in order to measure the improvement more accurately.
* Volatile Organic Compounds (covers 100 substances designated by Japan’s Ministry of the Environment)
47 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 48
Toyota Boshoku shifted from aluminium to nylon resin with exceptional
heat resistance and strength in the intake manifold*3 built into the
Toyota Corolla in 2000, thereby significantly reducing weight. The plastic
intake manifold is now being used in a wide range of vehicles made
by different manufacturers. Weight has been reduced by approximately
60% compared with conventional aluminium products for the
horizontally opposed engine employed in 2009.
*3 Part that supplies air to the engine interior
Kenaf fibres were first used in the base material for door trim
for the Celsior in 2000, and its application has since been
expanded to more vehicle models. Door trim base material
employed in the Lexus GS in 2012 achieves around a 30-
40% reduction in weight compared with 100% oil-derived
base material (polypropylene) (see page 57 for details).
From aluminium to plastic From oil-derived resin to plant-derived resin
Door trim base material employed in the Lexus GS
Plastic intake manifold
(for horizontally opposed engine)
Toyota Boshoku’s environmental technology is being put to effective use here, there and everywhere.
The Toyota Boshoku group is actively promoting the development of environmentally friendly products with the aim of realising a low-carbon
society. As one example, in automobile seats, efforts are being made to reduce the weight and size of components along with maintaining and
enhancing comfort and performance. By doing so, we are contributing to greater fuel efficiency and a reduction in CO2 emissions in vehicles. While
the functionality and performance of components have evolved greatly in line with evolution in automobiles, Toyota Boshoku has driven evolution
in environmental technology at the same time. This Special Feature introduces the initiatives Toyota Boshoku has taken in environmental technology
and the ways we contribute to the environment with a focus on the automobile seat employed in the Prius in 2015.
Development and Design in Harmony with the Environment
Toyota Boshoku’s Environmental Technology Evolving with Automobiles
approx. 60%
Weight reduced by
vs conventional products
around 30-40%
Weight reduced by
vs conventional models
Special Feature
Inside the engine room Inside the door
Urethane
Lightweight foam material
Urethane
47 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 48
Environmental
Activities
Toyota Boshoku performed exhaustive benchmark tests against competitors for each point on the automobile seat, identified challenges, set targets and
worked to enhance component performance. Project members had a keen desire to build a better seat, and in addition to enhancing comfort, succeeded in reducing overall seat (front
and rear) weight by approximately 20%. While working to reduce weight through such means as optimising the shape of the seat frame*1 and revising the fastening method for
components, Toyota Boshoku also realised a high level of rigidity. Safety performance was also enhanced, which included minimising whiplash in the event of a collision.
Good
Seat deformation
Weight
Average value of competitors
Conventional products
Developed products
Cut by20%
Cut by 20%
*2
New bioplastic material
The simpler the production process, the more likely it is to achieve zero defects,
which leads to higher quality. We revised and simplified the method of fastening
components and the assembly order, for instance. In particular, in welding processes
for the seat frame, we achieved a 50% reduction in the space required to do the
work and a 35% reduction in the number of processes necessary, which contribute
to a reduction in power consumption and CO2 emissions in the production process.
Bioplastic*4, which combines plant-derived resin made from
castor oil and polypropylene at an advanced level, is a new
material boasting world-class impact strength. We aim to
apply the material to a wide range of domains in addition to
application in automobile components.
*4 Jointly developed with Toyota Central R&D Labs., Inc.
In 2010, Toyota Boshoku employed an integrated
moulding method for the cylinder head cover for the
first time in which the resin is poured into dies set into
the shape of aluminium parts. The thickness of stack
manifolds, which are fuel cell components employed
in the fuel cell vehicle MIRAI released in 2014, was
significantly reduced thanks to this process, and this has
contributed to a reduction in fuel cell size.
Made product lighter
About KenafKenaf is an annual grass that grows quickly and has high CO2 absorption capabilities. Toyota Boshoku turned its attention to kenaf early on and has been working to develop products using kenaf since the latter part of the 1990s.
Door trim (developed product) using bioplastic can be made with foam injection
moulding at high magnification, thus realising up to a 30% reduction in weight.
Stack manifolds are piping
components that supply
hydrogen, air and coolant to
the fuel cell stack and consist
of aluminium parts that take
the fastening load of the fuel
cell stack and resin parts that
form the flow channels.
Toyota Boshoku developed an
engine-related part (air cleaner
case) using kenaf fibres in 2012.
This product achieves a 10%
reduction in weight and a 20%
reduction in CO2 emissions.
Key points
• Switched to resin for the seatback panel
• Used lightweight foam material for part of the rear cushion
*1 The seat frame was developed jointly with Toyota Motor Corporation, Aisin Seiki Co., Ltd. and Shiroki Corporation.
Toyota Boshoku ensures that both durability and safety are at least equivalent to levels recorded in
conventional models even when the materials used are lighter.
Cross-section of the rear cushion (Image)
Former rear cushion Newly developed rear cushion
Toyota Boshoku’s environmental technology is being put to effective use here, there and everywhere.
Graph of rigidity / mass
Reduced weight of rear seat
Reduced overall seat weight (front and rear) by around 20%
Improved welding process for seat frames
approx. 30%
Weight reduced by
vs conventional products
Reduced by
approx.10%
*2 The extent of seat deformation is measured after applying load in a front-back direction. The less deformation, the higher the rigidity
Former frame
Newly developed frame
In fuel cells
In an engine-related part
In newly developed material
Seat weight reduced by approx.
20%vs conventional
models
Key points
• Reduced size of components by revising structure
• Reduced number of components (by 17% vs. conventional models)
• Made structural components of the seat frame thinner
Reduced weight of front seat
Frame mass reduced by around vs conventional models
20%
Frame mass reduced by approx. vs conventional models
Seatback mass reduced by approx. vs conventional models
30%
10%
Required processing space
Before change After change
CO2 emissions
Before change After change
Power consumption
Before change After change
Reduced by approx. 50%
Reduced by approx. 40%
Reduced by approx. 40%
49 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 50
(1) Strengthen and promote consolidated environmental management
• Completed environmental risk maps at all regions and companies outside Japan. Implemented patrols inside and outside plant premises.
• Target companies: Acquired ISO 14001 certification according to plan (total sum: 86 plants)• Formulated global rules and conducted audits to ensure compliance with environmental laws
and regulations
○ 51
Promote activities for reducing environmental impact by enhancing activities of Environmental CommitteesPromote continuous improvements by building and enhancing the operation of environmental management systems (EMS)Comply with Toyota Boshoku group environmental laws and strengthen activities to prevent environmental risk
(2) Promote environmental conservation activities in cooperation with business partners • Companies targeted for certification ISO 14001: Promoted continued acquisition of outside
certification ○41・53Request that suppliers build and operate EMS and abide by laws
(3) Ensure environmental management in product development• Calculated and released LCA values for representative vehicle types ○ 55
Steadily promote LCA*1 management at the development stage
(4) Promote sustainable plant activities • Completed formulation of long-term “2050 Environmental Vision” and medium-term “2020 Environmental Action Plan” ○ 46
(5) Enhance and promote environmental education globally• Implementation of environmental education globally based on environmental education system• Held a lecture on environmental international trends (June)• Held an energy conservation “experiential” exhibition and a lecture on energy conservation as
well as presented awards for exceptional energy conservation cases (February)
○ 54Systemise and promote global environmental education for raising members’ environmental awarenessProvide environmental education and promote enlightenment activities globally through coordination with Toyota Boshoku group companies
(6) Enhance activities for communication with stakeholders through active disclosure of environmental information
• Enhanced environmental information by renewing website• Continued to exhibit environmental products and engaged in PR for environmental technology
at product trade shows in Japan and outside Japan• Issued information on global environmental activities in the Toyota Boshoku Report and
internal magazine
○ ーFurther enhance the provision of environmental information through the Toyota Boshoku Report and other communication tools
Promote activities for communication with local communities
Promoted activities for communication with local communities• Introduced environmental activities and provided environmental education through plant tours, etc.• Conducted information exchange through meetings with local citizens • Encouraged volunteers to engage in local environment-related activities
○51・54
*1 Life Cycle Assessment: Overall assessment for total environmental impact of products from raw materials through to production, use and up to disposal
(Assessment : Achieved)
The Toyota Boshoku group formulated the 2015 Environmental Action Plan, a medium-term plan for the environment implemented with the
aim of realising a sustainable society whereby the environment and business activities exist in harmony. Efforts have been made during this
period to achieve the goals set out in the plan.
As a result of our activities, we achieved all targets within the plan, such as those regarding CO2 emissions and basic unit, and basic unit
for waste.
Review of Five-year Toyota Boshoku group 2015 Environmental Action Plan
Action items for 2015 Results for 2015 Self-assessment Page
Action items for 2015 Results for 2015 Self-assessment Page
(1) Promote the development of technologies for next-generation vehicles • Urethane pad for rear seats and commercialised a thin, lightweight pad
• Succeeded in developing lightweight foam base material for door trim by utilising an ultra-high impact-resistant plastic alloy
○ 47Promote the development of weight-saving (lighter-weight) products for improving fuel efficiency
Establish and promote weight-saving target values for all project units for new vehicle models
• Proposed and incorporated a new structure and new method ○ 55
(2) Reduce CO2 emissions in production activities • Promoted CO2 emission reduction activities in the planning stage through thorough energy conservation checks when introducing new lines and equipment and incorporating other measures
• Drew up development themes (design, development and production preparation stages) in the medium and long term and set targets for effectiveness
○55・56
Promote the development of production technologies with the aim of achieving a 30% reduction in CO2 emissions of new production process
Promote CO2 emission reduction activities by making daily improvements and utilise renewable energy
Systematically introduce and promote co-generation system and renewable energy-related activities and equipment
• Achieved CO2 reduction target figures by continuing to conduct energy conservation diagnostics and completing zero-investment items globally
• Looked into and systematically conducted installation of co-generation systems (introduced at Gifu Plant in 2014; planning at Sanage Plant in 2016) and systematically conducted installation of solar power generation facilities (at Kariya Plant in 2013 and 2014)
○55・56
(3) Reduce CO2 emissions in logistics activities• Further promoted activities to enhance transportation efficiency: Combined deliveries going in
the same direction and implemented activities to enhance transport loading ratio ○ 56Promote activities that further raise transportationefficiency
<CO2 emissions in production and logistics> Item Category Unit 2015 Plan targets Self-assessment
CO2
emission
Production
Toyota BoshokuEmission t-CO2 Reduce 7% vs FY2008 ○Basic unit t-CO2 / 100 million yen Reduce 7% vs FY2008 ○
Japan affiliates
Basic unit t-CO2 / 100 million yen Reduce 5% vs FY2010
○Regions outside Japan ○Toyota Boshoku group ○
LogisticsToyota Boshoku Emission t-CO2 Reduce 5% vs FY2010 ○
Japan region Emission t-CO2 Reduce 3% vs FY2012 ○
Envi
ronm
enta
l man
agem
ent
Dev
elop
men
t an
d pr
oduc
tion
act
ivit
ies
for
the
real
isat
ion
of a
low
-car
bon
soci
ety
Man
agem
ent
Prod
ucti
on a
nd lo
gist
ics
Deve
lopme
nt an
d des
ign
Review of Five-year Toyota Boshoku group 2015 Environmental Action Plan (FY2011-2015)
■ Review of Five-year Toyota Boshoku group 2015 Environmental Action Plan
49 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 50
Environmental
Activities
(Assessment : Achieved)
Action items for 2015 Results for 2015 Self-assessment Page
The Toyota Boshoku group uses sales (adjusted with exchange rates held constant at 2005 levels) for the denominator of intensity performance metrics used to manage environmental protection activities. The boundary of reporting is as follows.
[Boundary of reporting]
• Toyota Boshoku: Global Mainstay Hub, plants and offices in Japan (18 plants)• Japan affiliates: Production entities (8 companies), others (7 companies)• The Americas region: Regional Management & Collaboration Hub (1 company),
production sites (12 companies)
(1) Promote recycling design and develop technologies for effective use of limited resources
<Seats>• Completed deployment of standardised frame in the hatchback vehicle types<Door trims>• Set “Easy to Dismantle Mark” for vehicle types that have issued formal drawings and
contributed to enhanced recyclability • Verified and completed the factoring in of 3Rs*2 and environmental checklist for each component• Reduced number of components and fastening points to the extent possible without impacting
performance
○ 55Promote recycling design that reduces the number of parts and improves ease of disassembly
(2) Develop and expand the use of plant-derived materials that can recycle CO2
• Continued to use kenaf products• Worked to commercialise new technology
• Developed injection moulding technology using kenaf fibre and commercialised an air cleaner case
• Developed simultaneous moulding technology for base material and the back side of plastic parts using natural fibre and commercialised an interior part
• Started development for new items by creating a bio-scenario and a bio-related roadmap not involving natural fibres
○47・57
Promote the development and product commercialisation of plant-derived materials such as kenaf
(3) Reduce waste materials and efficiently use resources in production activities and logistics activities • Reduced waste by raising yield
• Promoting reuse of waste as a resource• Started recycling kenaf remnants• Started recycling containers by changing packaging and containers used for raw materials
○57・58
Reduce emissions by raising yields and taking other measures to reduce waste at the source and promote effective use of resourcesEstablish targets individually giving consideration to water environmental issues in each country and region and continually reduce the volume of water usage
• Reused wastewater, used for cooling in the production process, in cooling towers• Reused rainwater and drain water from machines with air-conditioning units ○ 58
Promote streamlining of packaging specifications and the use of returnable containers
• Implemented cross-organisational deployment of improvement cases and achieved 36 cases of improvement in packaging for the year ○ 58
<Waste emissions, volume of packing and packaging material usage>
Item Category Unit 2015 Plan targets Self-assessment
Wasteemissions
Toyota BoshokuBasic unit t / 100 million yen Reduce 7% vs FY2008 ○Emission t Zero direct landfill waste (continued) ○
Japan affiliates Basic unit t / 100 million yen Reduce 5% vs FY2010 ○Regions outside Japan Basic unit t / 100 million yen Reduce 4% vs FY2011 ○
Packing and packaging
material usageToyota Boshoku Consumption t Reduce 7% vs FY2008 ○
*2 Reduce, Reuse, Recycle
Action items for 2015 Results for 2015 Self-assessment Page
(1) Strengthen management of chemical substances contained in products • Completed preparation of a framework for confirming the makeup of materials and a list of
chemical substances when introducing materials globally • Switched away from substances with environmental impact such as brominated flame
retardants • Reduced and strengthened management system for VOC in components
○ 59Steadily switch away from the use of substances with environmental impact and strengthen the structure for managing their usage
(2) Reduce the use of substances with environmental impact in production activities
• Reviewed the scope of robot application of mould-releasing agent and reduced the consumption of coating material
• Reduced PRTR and VOC by switching from organic solvent to water-based solvents ○ 59
Curb emissions of PRTR*3, VOC and other atmospheric pollutants
(3) Undertake efforts toward conservation of biodiversity• Promoted environmental protection activities globally based on the Toyota Boshoku Basic
Policy of Biodiversity ○ 59Formulate biodiversity guidelines and aim for co-existence with the ecosystems of surrounding communities
(4) Promote social contribution activities in order to co-exist with nature • Promoted tree-planting, forest management and reforestation activities in cooperation
with companies in the Toyota Boshoku group and surrounding communities globally and contributed to environmental preservation
• Japan region: 5 locations• Regions outside Japan: 4 regions, 16 countries• Number of activities: 210• Number of trees planted: 30 thousand
○ 59Promote activities that contribute to the environment and society such as environmental preservation, forest management and reforestation activities in cooperation with the Toyota Boshoku group and the surrounding communities
*3 Pollutant Release and Transfer Register
Tech
nolo
gy d
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ith
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• Asia & Oceania region: Regional Management & Collaboration Hub (1 company), production sites (12 companies)• China region: Regional Management & Collaboration Hub (1 company), production sites (12 companies)• Europe & Africa region: Regional Management & Collaboration Hub (1 company), production sites (7 companies)
51 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 52
Environmental Management
Based on the TOYOTA BOSHOKU Earth Charter , we will make collective efforts as a group
to contribute to preserving the global environment in order to realise a sustainable society.
The Toyota Boshoku group implements environmental management
activities on an ongoing basis that include convening sessions
for the environmental committee in respective regions to confirm
environmental initiatives, verifying cases of improvement via genchi-
genbutsu (Go, see & study) and actively sharing best practices.
● Safety / Health / Environment Function MeetingThe Environmental Affairs Committee (Toyota Boshoku) supervises
overseas related committees in each region and is responsible
for setting the desired direction for the Toyota Boshoku group’s
environmental activities (product environmental and production
Promoting environmental management
Safety / Health / Environment Function Meeting
Environmental Affairs Committee (Toyota Boshoku)
Safety & Health and Environmental Committee for Japan affiliates
CSR Committee for North, Central & South America, Environmental Working Group
Safety & Health and Environmental Committee for Asia & Oceania
Safety & Health and Environmental Committee for China
Environmental Committee for Europe & Africa
● Promotion system
● Status of Activities by Committee
Web
environmental aspects), confirming progress and following up on
actions, and holding deliberations.
Persons responsible for promoting environmental activities at each company continued to implement opportunities for mutual learning. We are conducting on-site confirmation and cross-organisational deployment of activities across companies, including cases of exceptional improvement, activities to prevent abnormalities and complaints, and cases of energy conservation.
Safety & Health and Environmental Committee for Japan affiliates
We strengthened environmental activities on product environmental and production environmental fronts aimed at achieving the targets of the 2015 Environmental Action Plan. All annual environmental targets were achieved by promoting management of chemical substances in products and initiatives to reduce substances with environmental impact.
Environmental Affairs Committee (Toyota Boshoku)
In addition to continuing “treasure hunting” activities, which involve looking for areas to save energy and making necessary improvements, this region undertakes energy conservation diagnostics and promotes improvement-based activities that focus on items to save energy that do not require investment. In the Mexico region, rainwater was used to water plants and trees, which resulted in a significant reduction in water consumption.
CSR Committee for North, Central & South America, Environmental Working Group
In China, we continue to implement appropriate management of chemical substances stipulated by law, further strengthen the reuse of water resources and undertake energy-saving activities based on energy conservation diagnostics. In particular, we pushed ahead with improvement activities offering significant spillover effects since so many regions are faced with severe water-related risks.
Safety & Health and Environmental Committee for China
Weekly meetings were held to follow up on the progress of environmental activities at each company to ensure that actions are being implemented smoothly. The committee worked to enhance environmental activities at each company. In addition, tree-planting activities were actively undertaken in each country.
Environmental Committee for Europe & Africa
In this region, we are actively working to reduce water consumption, which includes the reuse of wastewater, used for cooling in the production process, in cooling towers, especially in business entities where water consumption is high. We also planted over 3,000 trees in the region in line with proactive efforts aimed at greening activities inside and outside plant premises.
Safety & Health and Environmental Committee for Asia & Oceania
■ Environmental Management
51 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 52
Environmental
Activities
INPUTBusiness activity
Development /Design
Logistics
Production
Purchasing
Energy
Waste generation
◆◆◆▲
9,355t3,451t8,630t
7.2t12t
Recycled amount
Packaging materials
◆
▲
62,437t
2,008t
Water
Water
Chemical substances
▲▲
Substances subject to PRTR*4
VOC usage958t528t
Raw materials
▲▲
MetalsNonmetals
465,540t192,565t
OUTPUT
Gas emissions into the atmosphere
◆◆◆◆◆ ◆
◆
City gasLPGKeroseneHeavy oilLight oil
Electricity
◆
▲
Direct landfill wasteIncinerated wasteFee-based recycling*3
Chemical substances included in waste (subject to PRTR)(included in VOCs)
Recycle
Packaging materials
CO2
Scope 1*1
Scope 2*2
Chemical substances(subject to PRTR)(included in VOCs)
288,908t-CO2
49,866t-CO2
239,042t-CO2
166t497t
Toyota Boshoku group Toyota Boshoku
1,895 thousand m3
19,780 thousand m3
2,781 t 44 kL 17 kL 280 kL
474,264 MWh
Our business activities and the environment (Resource consumption for business activities and emissions causing environmental impact)
Resource consumption for business activities and emissions causing environmental impact in fiscal 2015
(Unit: Millions of yen)
Environmental accountingToyota Boshoku Japan affiliates Regions outside Japan
Investment amount Cost amount Investment
amount Cost amount Investment amount Cost amount
Business area cost
Pollution prevention 57 102 37 36 98 85Global environmental conservation 487 137 63 35 412 64
Resource circulation 23 235 5 68 2 33Administration cost 0 184 0 45 0 47R&D cost 68 295 0 0 — —Social activity cost 0 15 0 5 0 4Environmental remediation cost 0 52 0 0 0 0Subtotal 635 1,020 105 189 512 233
Aggregate Investment amount 1,252 Cost amount 1,442
Depreciation and amortisation is not included in the costs.
(Unit: Millions of yen)
Economic effects Toyota Boshoku Japan affiliates Regions outside Japan
Cost reduction through energy saving 79 5 192Resource saving & reduction of waste disposal costs 551 57 1,238
Profit on sale of recycled materials 179 1 371Aggregate 2,673
(Unit: t-CO2)
Material effects Toyota Boshoku Japan affiliates Regions outside Japan
Energy saving 1,390 170 2,855
(Unit: t)
Material effects Toyota Boshoku Japan affiliates Regions outside Japan
Waste disposal 1,134 406 682
The Toyota Boshoku group believes that it is important to
assess the effectiveness of our investment and cost in terms of
environmental preservation in order to improve the efficiency of
administration and make rational decisions.
● Cost of environmental preservationIn fiscal 2015, the environmental accounting of the Toyota
Boshoku group recorded investment of 1,252 million yen, costs of
1,442 million yen and economic effects of 2,673 million yen.
● Economic effects of environmental preservation measuresThe economic effects of our environmental preservation measures
were calculated from three ascertained items that were based on a
sound rationale. Deemed effects such as risk avoidance effects are
not taken into account.
● Material effects of environmental preservation measuresExamples of improvements in waste reductions and reductions in
CO2 emissions are provided in this report on pages 55-59.
Environmental accounting
*1 Direct discharge of greenhouse gas from operators themselves (fuel combustion, industrial processing) / Targeting city gas, LPG, kerosene, heavy oil and light oil in the Toyota Boshoku group*2 Indirect discharge that comes from electricity, heat and steam supplied from other companies / Targeting electricity in the Toyota Boshoku group*3 Waste that is recycled for a fee *4 Pollutant Release and Transfer Register
is presented for data disclosed on CO2 emissions that has received an independent assurance (see page 60 for details).The assurance symbol
53 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 54
The Toyota Boshoku group presents awards to business sites and
plants that have carried out exceptional environmental activities
and achieved results in respective categories, including safety, the
environment and quality. The following companies and plants were
presented with the Environmental Award for fiscal 2015 for their
efforts in promoting exceptional environmental activities.
Candidates for the Environmental Award are selected based on
evaluations of environmental performance, environmental activities
and secretariat activities, and from fiscal 2015, on-site audits. In
fiscal 2015, Toyota Boshoku Shiga won the Platinum Award.
In addition to continuing to implement environmental initiatives,
in fiscal 2015 as well as in fiscal 2014 Toyota Boshoku Shiga
undertook high-level environmental activities that included
contributing to an enhanced environmental image on the part
of the Toyota Boshoku group. This was achieved, for example,
by participating in a symposium run by The shiga economic and
industrial association.
Introduced one of its environmental activities at the external symposium (Toyota Boshoku Shiga)
The Toyota Boshoku group has established independent rules related
to the acquisition and operation of ISO 14001 and has completed
acquisition and renewal of certification as planned centred on efforts
by the group’s respective Regional Management & Collaboration
Hubs (RM&CH).
Boshoku Automotive (Thailand) acquired certification in fiscal 2015.
ISO 14001 acquisition status
● External auditsAudits were carried out by a certification body in each country and
region in a systematic manner in fiscal 2015 as well, with all plants
subject to the audit evaluated as having zero non-conformance
items and operating all required ISO 14001 items appropriately.
In the Toyota Boshoku group to prevent environmental accidents
and pollution, we conduct environmental risk management based
on voluntary standards that are stricter than regulations require.
In addition, we prevent environmental risks from manifesting by
making a map of these risks assumed inside and outside plant
premises and conducting rigorous patrols.
Environmental risk management
Toyota Boshoku group Global Awards “Environmental Award”
* Award given to sites that have won the Gold Award for three consecutive years (one Silver Award permitted)
Toyota Boshoku ShigaPlatinum Award*
Guangzhou Intex Auto Parts Toyota Boshoku Sanage Plant
Silver Award
Toyota Boshoku Hanoi Toyota Boshoku Kyushu Toyota Boshoku Tohoku
Bronze Award
■ Environmental Management
53 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 54
Environmental
Activities
TOPICS Implementing activities worldwide during Environment Month and Energy Conservation Awareness Month
The Toyota Boshoku group carried out a variety of events during Environment
Month and Energy Conservation Awareness Month befitting the culture and
circumstances of each country so that people start to think in a fun way
TOPICS Environmental communication ~Provided environmental education to local children~
Starting in fiscal 2013, Toyota Boshoku members are now in their third year
of undertaking initiatives to convey the importance of the environment to
local children. In fiscal 2015, we provided a programme on environmental
protection that prompts children to think and act in a more environmentally
friendly way.
The programme was designed for easy child participation by being
based on the speed of learning typical of fifth grade students and the
content of their textbooks with regard to the environment and the local
community. Some of the children commented that they now understood
the importance of the environment and others said that they now realised
there were places lacking in water. Some students also asked about Toyota
Boshoku’s environmental activities. To this end, the programme served to
increase awareness of the importance of environmental protection while Asuke Elementary School (Toyota city, Japan) Kano Elementary School (Toyota city, Japan)
also stimulating interest in the environmental activities being undertaken by
Toyota Boshoku.
Going forward, the Toyota Boshoku group will further strengthen its ties
with the community through environmental education for local children and
contribute to increasing awareness toward the environment among children,
the leaders of the next generation.
about the environment. The scope of the activities has been expanded to
include not only company members but also their families, which helped raise
environmental awareness while having fun at the same time.
Local cleanup activity (Shin San Shing)
Local cleanup activity (Tianjin Feng’ai Automotive Seat Parts)
Park cleanup activity (Tianjin Toyota Boshoku Automotive Parts)
Local cleanup activity (Toyota Boshoku)
Environmental painting contest (Toyota Boshoku Turkey)
Held the environmental painting contest (Toyota Boshoku Argentina)
The Toyota Boshoku group undertakes systematic environmental
education through training for new hires, general training and
training by job classification and workplace.
The Toyota Boshoku group works as one to implement
environmental enlightenment activities every year during
Environment Month in June and Energy Conservation Awareness
Month in February. In the Japan region, we invited Mr. Keiji Nemoto,
General Manager of the Environmental Affairs Division at Toyota
Motor Corporation, to give a lecture on Toyota’s environmental
initiatives and future vision during Environment Month. During
Energy Conservation Awareness Month, we invited Ms. Masako
Konishi, Deputy Director, Conservation Climate & Energy Project
Leader, WWF Japan to talk about the latest international trends,
centred on the Paris Agreement ratified at COP21 in 2015.
Environmental education and awareness raising
55 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 56
Development and Production Activities for the Realisation of a Low-Carbon Society
The Toyota Boshoku group works to reduce CO2 emissions in all areas, from development and
design to production and logistics, in order to help prevent global warming.
● Reduce CO2 emissions in the life cycle of Toyota Boshoku products by reducing weights
Toyota Boshoku ascertains CO2 emissions in the life cycle of core
products, from their manufacture and sale to utilisation and disposal,
and then takes action to reduce these emissions as a means to
promote more environmentally friendly products.
As part of these efforts, we are working hard to reduce the
weight and size of products since CO2 during the utilisation period
accounts for the majority of total emissions, and these initiatives are
contributing to an increase in fuel efficiency and a reduction in CO2
emissions in automobiles (see page 47-48 for details).
Development and design
● Reduce CO2 emissions in productionThe Toyota Boshoku group is conducting energy-saving activities
on an ongoing basis, centred on the Energy Conservation Session.
In particular, energy conservation diagnostic activities are being
implemented group-wide and we have implemented initiatives
through to completion for the energy conservation items that we
have extracted.
As a result, the Toyota Boshoku group achieved all of our targets
for fiscal 2015. Specifically, we realised the Toyota Boshoku group
target of 15.0t-CO2 / 100 million yen with a result of 13.2t-CO2 /
100 million yen; our target of 61,408t-CO2 in total Toyota Boshoku
Production and logistics
(FY)2010 2011 2012
(Total amount / Unit: thousand t-CO2)
80
60
40
20
0
20
15
10
5
0
65.3 60.6 63.0
2015(Plan target)
2013
62.0
2014 2015
56.6
(Basic unit / Unit: t-CO2 / 100 million yen)
Total amount Basic unit
11.5 10.7 10.3 9.7
Reduce7% vs
FY2008
8.8
53.8
7.8
Total amount of CO2 emissions and basic unit [Toyota Boshoku]
CO2 conversion coefficient
Fuel CO2 conversion coefficient
Purchased electricity 0.37t-CO2 / MWh
City gas 2.16t-CO2 / thousand m3
LPG 3.00t-CO2 / t
Kerosene 2.53t-CO2 / kL
Heavy oil 2.70t-CO2 / kL
Light oil 2.64t-CO2 / kL
(FY)2011 2012
(Total amount / Unit: thousand t-CO2)
400
300
200
100
0
20
15
10
5
0
259.7
2010
266.3 278.1
2013
292.8
2014 2015 2015(Plan target)
288.6
(Basic unit / Unit: t-CO2 / 100 million yen)
Reduce5% vs
FY2010
16.316.5 16.2 16.016.5 15.8 15.9 16.3
14.2288.9
16.1
13.2
Toyota BoshokuTotal amount of CO2 emissions
Toyota Boshoku group basic unit (target)
Japan affiliates The Americas region
Asia & Oceania region China region Europe & Africa region
Toyota Boshoku group basic unit (result)
Total amount of CO2 emissions and basic unit [Toyota Boshoku group]
Product life cycle
emissions with a result of 53,801t-CO2; and our target of 9.5t-CO2 /
100 million yen with a result of 7.8t-CO2 / 100 million yen.
Life cycle
100
Life cycle emissions for entire vehicle
(%)
1
TotalUpstream(Material
manufacturer)Toyota Boshoku Downstream (Customer)
2 3 4 5
●13%1 ●7%2 ●78%3 ●1%4 ●1%5
Material manufacture Production Utilisation Maintenance Disposal
■ Development and Production Activities for the Realisation of a Low-Carbon Society
55 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 56
Environmental
Activities
The scope of CO2 management was expanded in fiscal 2010.
Reduce 3% vs
FY2012
(FY)2011 2013
(Total amount / Unit: t-CO2)
6,000
4,000
2,000
0
4,232
2010
5,553
4,4603,498
2014
4,326
3,321
2015
4,305
3,164
2012
4,718
3,525
2015(Plan target)
Reduce 5% vs FY2010
Toyota Boshoku Japan affiliates
Total CO2 emissions in logistics [Japan region]● Reducing CO2 emissions in logisticsToyota Boshoku regularly held logistics promotion meetings and
worked to vitalise logistics-related activities at each plant. We
implemented activities to enhance load efficiency through mixed
loads and shifted to the appropriate vehicle class depending on
the load amount. We also shared cases of improvement through
continued participation in Toyota Group logistics and environmental
liaison meetings.
As a result, Toyota Boshoku achieved its target of 4,978t-CO2
with a result of 4,305t-CO2 and Japan affiliates achieved their target
of 3,387t-CO2 with a result of 3,164t-CO2.
Reducing CO2 emissions in logistics(Toyota Boshoku)
Fiscal 2015 target
4,978t-CO2
Fiscal 2015 result
4,305t-CO2
CO2 emissions in production process(Toyota Boshoku group)
Fiscal 2015 target
312thousand t-CO2
Fiscal 2015 result
289thousand t-CO2
TOPICS Energy conservation activities for air compressors
Toyota Boshoku Haiphong (Vietnam) has introduced
equipment that enables control of air compressors, which
account for a large portion of power consumption at the
company, to realise optimum operation across the board.
In addition, flow meters have been installed in each item of
production equipment to identify and manage the amount
of air required. As a result, this has helped optimise
the operation of air compressors, thereby reducing CO2
emissions and energy costs.
● Amount of CO2 reduced over the year: 1,399t-CO2
● Amount of energy costs reduced over the year: 23,415 thousand yen Image of change in load
0
(Units)
⑥⑤④③②①
Base machine
Introduced equipment to automatically switch the six units on and off in sequence depending on load in order to ensure optimal operation⑥
⑤
④
③
②
①
Ⓜ
Ⓜ
Ⓜ
Ⓜ
1st machine
PC
2nd machineJetting
Flow meter
Airbag loom
Feedback control
Com
pres
sors
Six units controlled for optimum operation
Base machine
Ⓜ
TOPICS Activities of the Energy Conservation Session
Toyota Boshoku’s Energy Conservation Session is carrying out energy conservation diagnostic activities globally. This involves extracting and analysing items in
which energy can be saved and then focusing on key items among those that can be implemented immediately with zero investment. We are decisively carrying
out initiatives related to these areas.
is presented for data disclosed on CO2 emissions that has received an independent assurance (see page 60 for details).The assurance symbol
At least half of the items can be implemented immediately with zero investment.
Narrow down to core items and make efforts company-wide.
140120100806040200
Lighting Air Standbypower
Airconditioning
Heatsource
Coolingwater
Productionequipment
Heatingfurnace
Painting Mouldingmachine
Emissions Building Boiler
68% of items
47%
53%
Proposal255
items
Japan
43%
57%
Proposal581
items
Outside Japan
Zero-investment items Investment items
Core items to tackle●●●●
Reduce unnecessary lighting to zeroRepair all air leaks Turn off all breakers after production completed Repair all steam leaks
Zero-investment itemsInvestment items
57 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 58
● Recycling activitiesThe Toyota Boshoku group worked to raise yields and took other
measures to reduce waste at the source as well as promoted
recycling initiatives to transform waste into valuable items in the
market. We also pushed ahead with efforts to reduce the amount of
waste generated and other recycling activities.
As a result, the Toyota Boshoku group achieved its target of
24,176t with a result of 21,435t. With regard to the basic unit
for waste, the group achieved a result of 1.0t / 100 million yen
compared with its target of 1.2t / 100 million yen.
Toyota Boshoku has achieved direct zero waste every year since
fiscal 2007.
Production and logistics
Technology Development and Production Activities for Building a Recycling-Oriented SocietyThe Toyota Boshoku group incorporates the use of raw materials and other materials
that can be recycled and considers product design and development with a view to
the creation of a recycling-oriented society. We also work to reduce waste and water
consumption in the production stage.
Toyota Boshoku has been pouring its efforts into shifting from
petroleum-derived materials to plant-derived materials that can
recycle CO2 with the aim of creating a recycling-oriented society.
Toyota Boshoku has worked on the development of materials
with a focus on the application of plant derivatives in industrial
products since the latter half of the 1990s. The primary material
has been kenaf, in which we have gradually been expanding the
use of kenaf following its use as a base material in door trim for
the Toyota Celsior in
2000. Additionally,
Toyota Boshoku has
developed numerous
products made with plant
material, including the
development of completely plant-derived components that combine
kenaf with polylactic acid, as well as bio-urethane, which uses castor
oil as a plant material aside from kenaf. Door trim and air cleaner
cases, an engine-related component, are among the core products
that adopt plant-derived material (see page 47 for details).
Development and design
(FY)2011 2012
(Emission / Unit: t)
100,000
75,000
50,000
25,000
0
2.0
1.5
1.0
0.5
0
21,214
2010
19,341 21,355
2013
21,662
2014 2015(Plan target)
20,655
2015
21,435
Toyota Boshoku
Toyota Boshoku basic unit (target)
Japan affiliates The Americas region
Asia & Oceania region China region Europe & Africa region
Japan affiliates basic unit (target)Toyota Boshoku basic unit (result) Japan affiliates basic unit (result)Regional affiliates outside Japan basic unit (target)Regional affiliates outside Japan basic unit (result)
Reduce5% vs
FY2010
Reduce7% vs
FY2008
Reduce4% vs
FY2011
0.710.67 0.640.87
0.75
1.22 1.21 1.181.10
1.19
1.85 1.81
1.57
1.83
1.57
1.26
1.62
1.06 1.050.871.08 1.07 1.05 1.07 0.86
0.59
1.09
1.55
1.26
0.86
0.750.91
(Basic unit / Unit:t / 100 million yen)
Amount of waste
Amount of waste and basic unit [Toyota Boshoku group]
(FY)2011 2012
(Emission / Unit: t)
10,000
8,000
6,000
4,000
2,000
0
100
95
90
85
80
02010
7,1586,226 6,290 6,307 5,796 5,870
Amount of waste
2013 2014 2015
(Recycle rate / Unit: %)
99.02 99.29 99.52 99.61
Recycling rate
99.70 99.80
2,238
4,920
1,969
4,257
1,937
4,353
2,008
4,299
1,669
4,127
1,824
4,046
Toyota Boshoku Japan affiliates
Amount of waste and recycling rate [Japan region]
Bioplastics
Vegetation resourcesCombustion
Raw materialAutomotive parts
Sunlight
Photosynthesis
Synthesis
Fermentation
CO2
H2O
Kenaf
CornSugarcane
Base materialTextile productsInjection-moulded parts Urethane foam
Plant fibre
Image of CO2 recycling
■ Technology Development and Production Activities for Building a Recycling-Oriented Society
57 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 58
Environmental
Activities
● Reducing the amount of packing and packaging materials
Toyota Boshoku works to reduce the amount of packaging materials
used with the aim of enabling more environmentally friendly
packaging while keeping intact the quality of the product.
In fiscal 2015, we succeeded in reducing packaging material
by 198t per year by making five different improvements. Of these,
we confirmed that improvements made to packaging conducted
for replacement bumpers by eliminating one kind of packaging
(FY)2011 2012
(Final disposal amount / Unit: t)
50
40
30
20
10
02010 2013 2014
40.9
25.4
15.5
24.4
18.2
6.1
23.4
11.2
12.2
27.5
11.3
16.2
20.4
12.6
7.82015
14.3
9.94.4
Toyota Boshoku Japan affiliates
Amount of final waste disposal [Japan region]
(FY)
(Consumption / Unit: t)
3,000
2,000
1,000
02010
2,584
2011
2,287
2012
2,109
2013
2,107
2014
1,960
2015
2,008
2015(Plan target)
Reduce7% vs
FY2008
Packing and packaging material use [Toyota Boshoku] Reduce5% vs
FY2010
(FY)2011 2012
(Consumption / Unit: thousand m³)
Water consumption
4,000
3,000
2,000
1,000
0
0.20
0.15
0.10
0.05
0
1,881
2010
2,0051,988
2013
1,946
2014
1,885
2015
1,895
2015(Plan target)
Toyota Boshoku
Basic unit
Japan affiliates The Americas region
Asia & Oceania region China region Europe & Africa region
(Basic unit / Unit: thousand m³ / 100 million yen)
0.120.130.11 0.11
0.10 0.09
Water consumption results [Toyota Boshoku group]
material, leading to a reduction in packaging consumption, did not
cause any adverse impact on the product quality when delivered to
automakers.
As a result, Toyota Boshoku achieved its reduction target of 2,054t
with a result of 2,008t.
● Reuse of water resourcesThe Toyota Boshoku group continued implementing initiatives that
place value on water in fiscal 2015, with a particular focus on sites
with processes that consume a lot of water. Efforts included reuse of
rainwater, reclaimed water, cooling water and wastewater purified
with a Reverse Osmosis (RO) system.
As a result, the Toyota Boshoku group achieved a result of 1,895
thousand m³ compared with its target of 2,050 thousand m³ for
water consumption.
TOPICS Monitoring the quality of wastewater following treatment by using living creatures
The Toyota Boshoku Sanage Plant and TB Kawashima monitor water quality following
wastewater treatment using machinery on a steady basis to confirm that there are
no issues with effluent discharged into the river system. Additionally, the companies
conduct monitoring of factory effluent following wastewater treatment by using killifish
and crucian carp. In addition to using living creatures to manage the quality of factory
effluent, it enables us to convey in simple terms the effects of wastewater treatment to
local children when they visit the factory for tours after showing them the wastewater
treatment process in a laboratory setting.
Monitoring by using crucian carp (TB Kawashima)
Factory tour at Toyota Boshoku Sanage Plant
Amount of water used(Toyota Boshoku group)
Fiscal 2015 target
2,050thousand m³ / year
Fiscal 2015 result
1,895thousand m³ / year
59 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 60
The Toyota Boshoku group conducts activities aimed at protecting
biodiversity based on the Toyota Boshoku Basic Policy of
Biodiversity (refer to reforestation activities based on “3. Nurturing
nature” on pages 43-44).
In addition, we have expanded our traditional reforestation
activities and are pouring further efforts into a global programme
that takes advantage of the Toyota Boshoku group’s network. By
protecting forest ecology through forest preservation, we can also
protect biodiversity.
Co-existence with nature
Reduction of the Use of Substances with Environmental Impact and Carrying Out Social Activities in Co-Existence with the Natural EnvironmentThe Toyota Boshoku group clearly identifies global trends in environmental laws and regulations and
promotes activities to reduce substances with environmental impact in both products and production.
We also formulated the Toyota Boshoku Basic Policy of Biodiversity and are implementing activities to
protect biodiversity based on this policy in order to realise a society in harmony with nature.
● Creating a management system for chemical substancesThe Toyota Boshoku group is taking steps to manage chemical
substances in all business activities from development and design to
production and packaging.
Development through to production
● Activities to reduce emissions of chemical substances
We are undertaking activities to reduce the amount of Pollutant
Release and Transfer Register (PRTR) substances and Volatile Organic
Compounds (VOC) used and emitted from plants. This includes
minimising areas to be coated and reducing the incidence of recoating
by revising the mould release agent coating method and reducing the
consumption of coating material by improving the cleaning method.
As a result, we achieved our target of 178t of PRTR substances with
a result of 166t and our target of 596t of VOC with a result of 497t.
■ Reduction of the Use of Substances with Environmental Impact and Carrying Out Social Activities in Co-Existence with the Natural Environment
Reduce5% vs
FY2010
(FY)
(Emission / Unit: t)
600
400
200
02014
165
517
2015
166
497
2013
148
481
2012
165
540
2011
162
542
2010
188
634
2015(Plan target)PRTR VOC
PRTR substances / VOC emissions [Toyota Boshoku]
Figures after fiscal 2010 have been restated in line with a review of the scope of calculation.
Challenge of planting 1.32 million trees as part of reforestation activities
●�Curb depletion of the world’s forests, protect living forests and contribute to the restoration of rich habitats
●�Plant trees that suit the land and contribute to the protection of endemic species’ local habitats
The entire Toyota Boshoku group promotes the protection of natural habitats
Management areaMaterial classification
Product developmentand design
Production environment(work environment)
Mass-produced products
Packing / packagingmaterials
Component
External product Design drawing
Mass-produced product
Surface materials, etc., with no impact on environment, etc.
Adhesives, etc., that impact environment, etc.
Coating for repairs, etc., that may adhere to products
Equipment cleaners, etc., that do not adhere to products
Packing / packagingmaterials, cardboard, etc.
Packing / packagingmaterials
Atmosphere
Work environment
Water Waste
Raw
mat
eria
ls m
akin
g up
pro
duct
Seco
ndar
y m
ater
ials
■ Independent Assurance
59 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 60
Environmental
Activities
Independent Assurance
Toyota Boshoku has received an independent assurance from KPMG AZSA Sustainability Co., Ltd. with regard to the collection,
calculation and disclosure of CO2 emissions generated in production that are stated in this report in accordance with standards set
forth by Toyota Boshoku. The assurance symbol is presented for indicators that have been assured.
61 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 62
In the automobile industry during the fiscal year under review
(year ended March 31, 2016), in the United States the volume
of vehicle sales, centring on SUVs and pickup trucks, posted an
increase supported by low gasoline prices and moderate economic
growth. In Europe, unit sales of vehicles also trended firmly due
to an improvement in the economy. On the other hand, difficult
circumstances continued in China, Thailand and other Asian
countries along with slowing economic growth. In Japan, the volume
of sales of standard-sized cars was maintained at the same level of
the previous year thanks to the introduction of popular new models.
However, there was a reactionary decline in previously strong sales
of mini-vehicles following a surge in demand prior to an increase in
the tax rate on mini-vehicles. As a result, a mild downtrend in overall
vehicle sales in Japan is continuing.
Amid these conditions, the Toyota Boshoku group has designated
the two-year period up to fiscal 2016 as a time for strengthening
our corporate structure and will once again return to our starting
point and solidify our footing and carry out structural reforms.
Regarding technology development, based on the concept of
Toyota New Global Architecture (TNGA), we developed a new
standard frame for seats installed in the new model Prius.
In May 2015, Boeing 767-300 aircraft fitted with Toyota
Boshoku’s first aircraft seats began service on domestic routes
operated by All Nippon Airways Co., Ltd.
For measures to strengthen our profit structure, in The Americas
we promoted profit structure reforms based on the two pillars of “a
thorough focus on the fundamentals of manufacturing” and “profit
reform initiatives.” As a result of these measures, we steadily made
improvements in such areas as serious accidents, quality defects
and delivery deficiencies and are transforming toward a corporate
structure that can generate profits.
In Europe, we have made company-wide efforts to promote profit
reforms. However, we concluded that to establish a viable business,
we must execute drastic reforms that extend even one step farther.
To avoid incurring even wider losses in the future, we therefore
sold all our shares in three plants of Boshoku Automotive Europe
as well as in Boshoku Automotive Poland and Boshoku Automotive
Czech. Also, with the exception of the automobile seats business,
we sold the automobile interior components business of Toyota
Boshoku Europe’s Munich branch. On the other hand, in working
toward sustainable growth in the future, Toyota Boshoku established
Megatech Boshoku Europe as a joint venture with the buyer of the
shares to continue undertaking the door trim business that utilises
our natural fibre-simultaneous back injection technology, which is
■ Net sales
(Billions of yen)1,500
1,250
1,000
750
500
250
02012 2013 2014 2016
964.21,079.4
1,218.3
1,415.7
2015
1,305.5
(Years ended March 31)
Financial Report
Management’s Discussion and Analysis of Financial Conditions and Operating Results
Overview of fiscal year our independently developed production technology.
Due to such factors as a change in the vehicle model mix in
Japan and the impact of exchange rates, consolidated net sales of
the Toyota Boshoku group increased 110,270 million yen (8.4%) to
1,415,772 million yen.
Operating income
Despite such income-reducing factors as increases in miscellaneous
expenses such as production preparation expenses accompanying
model changes for principal vehicle models, operating income
increased 27,099 million yen (83.7%) to 59,492 million yen due to
such income-increasing factors as the impact of higher sales and the
implementation of rationalisation measures.
Non-operating income (expenses) and Ordinary income
Non-operating income decreased 6,513 million yen (49.2%) from
the previous fiscal year to 6,722 million yen due to a decrease in
equity of net earnings of affiliates.
Non-operating expenses increased 5,553 million yen (122.4%)
to 10,092 million yen due to the impact of exchange rates.
As a result, ordinary income amounted to 56,123 million yen and
the ordinary income margin was 4.0%.
Extraordinary income or loss, Income taxes and Income taxes–deferred
An extraordinary loss of 32,177 million yen was recorded mainly
due to such factors as a loss on business liquidation in the Europe &
Africa region.
61 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 62
Financial Report
Income taxes and income taxes–deferred decreased 1,673
million yen (11.6%) to 12,713 million yen.
The ratio of income before income taxes decreased from 57.9%
in the previous fiscal year to 53.1%.
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests increased 2,088
million yen (39.8%) to 7,331 million yen from the previous fiscal
year due mainly to increases in profits of consolidated subsidiaries in
Asia & Oceania.
Profit attributable to owners of parent
Profit attributable to owners of parent decreased 1,303 million
yen (25.0%) to 3,900 million yen from the previous fiscal year. Net
income per share was 21.02 yen.
Cash flow
Net cash provided by operating activities amounted to 78,912
million yen. Despite such cash-decreasing factors as an increase
in trade notes and accounts receivable of 19,430 million yen and
income taxes paid of 18,808 million yen, the increase in cash
resulted mainly from income before income taxes of 23,945 million
yen and depreciation and amortisation of 41,012 million yen.
Net cash used in investing activities was 48,086 million yen.
Despite such cash-increasing factors as proceeds from sales of
property, plant and equipment of 2,249 million yen and proceeds
from withdrawal of time deposits of 1,073 million yen, this was due
■ Net sales by geographic region
(Billions of yen)
2016201420132012
572.3
142.4
250.1
50.9
621.9
176.5
278.5
60.3
661.4
214.2
322.7
86.3
726.2
316.4
357.2
96.5
2015
678.8
287.6
312.9
101.8
Europe & Africa Asia & Oceania The Americas Japan
*Asia & Oceania includes China.*Adjusted amounts for transactions among regions are not included.
(Years ended March 31)
1,500
1,250
1,000
750
500
250
0
● Scope of consolidation The consolidated financial statements include the accounts for all subsidiaries.● Application of the equity method Investments in all affiliates are accounted for by the equity method. The fiscal years for certain affiliates accounted for by the equity method are different from that of the Company.
The Company is using the financial statements for their respective fiscal years.
to such cash outflows as purchase of property, plant and equipment
of 36,392 million yen and payments for the transfer and receipt of a
business of 9,700 million yen.
Net cash used in financing activities was 8,739 million yen.
Despite such cash-increasing factors as a net increase in short-
term loans payable of 12,350 million yen, cash decreased due to
repayments of long-term loans payable of 39,468 million yen.
Capital expenditures
During the fiscal year under review, total capital expenditures
amounted to 36,898 million yen and these investments were
concentrated on measures for new products and for rationalising
and upgrading production facilities. These consisted mainly of capital
expenditures in Japan as well as The Americas and China.
Capital expenditures in Japan amounted to 15,141 million yen
and were for measures for new products and for rationalising and
upgrading production facilities.
Capital expenditures in The Americas amounted to 5,149 million
yen and were mainly for measures for new products and for
rationalising and upgrading production facilities.
Capital expenditures in Asia & Oceania amounted to 12,307
million yen and were mainly for measures for new products,
rationalising and upgrading production facilities and for the
preparation for production at Shenyang Toyota Boshoku
Automotive Parts.
Capital expenditures in Europe & Africa were 4,300 million yen
and were mainly for measures for new products and rationalising
and upgrading production facilities.
■ Operating income / Operating income to net sales
(Billions of yen)60
50
40
30
20
10
02012 2013 2014 2016
20.9 25.3 28.8
59.4
2015
32.3
(%)6.0
5.0
4.0
3.0
2.0
1.0
0
Operating income to net sales
2.2 2.3 2.4 2.5
4.2
(Years ended March 31)
IR Library
63 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 64
Millions of yen
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Net sales ¥ 1,415,772 ¥ 1,305,502 ¥ 1,218,399 ¥ 1,079,497 ¥ 964,295 ¥ 983,727 ¥ 953,729 ¥ 979,775 ¥ 1,233,789 ¥ 1,082,755Operating income 59,492 32,393 28,823 25,302 20,910 36,856 25,143 14,054 65,596 48,381Ordinary income 56,123 41,091 40,294 33,914 23,225 36,027 24,067 13,292 65,696 52,143Profit attributable to owners of parent 3,900 5,204 12,610 15,792 3,232 11,466 6,882 (5,064) 40,720 30,105Total net assets 243,146 264,038 249,082 220,740 190,347 196,992 196,545 189,038 226,880 197,797Capital stock 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400Total assets 725,895 719,680 659,008 583,955 597,654 504,472 546,486 466,506 527,622 464,747Capital expenditures 36,898 50,190 51,116 36,805 37,583 41,229 43,076 60,496 52,961 47,550Depreciation and amortisation 41,012 40,121 36,302 32,744 31,529 32,342 35,121 31,672 32,940 29,377R&D expenses 38,450 38,821 40,189 36,321 32,543 32,434 30,021 28,968 31,717 26,404
Per Share Data (Yen)
Net income (loss) (Basic) ¥ 21.02 ¥ 28.08 ¥ 68.05 ¥ 85.23 ¥ 17.45 ¥ 61.82 ¥ 37.00 ¥ (27.15) ¥ 217.76 ¥ 160.76Net income (Diluted)* 21.02 — — — — 61.82 37.00 — 217.55 160.70Cash dividends 30.00 18.00 18.00 18.00 16.00 16.00 13.00 20.00 35.00 24.00Net assets 1,065.72 1,164.36 1,115.69 1,010.49 868.93 890.78 883.96 848.01 997.43 858.86Cash Flow
Net cash provided by operating activities ¥ 78,912 ¥ 65,536 ¥ 49,590 ¥ 44,474 ¥ 46,920 ¥ 60,630 ¥ 64,188 ¥ 35,111 ¥ 72,371 ¥ 72,157 Net cash provided by (used in) investing activities (48,086) (51,615) (51,867) 5,826 (76,108) (40,462) (41,337) (67,739) (52,434) (45,948)Net cash provided by (used in) financing activities (8,739) 516 (5,636) (41,942) 30,748 (15,345) (13,547) 47,525 16,053 (5,885)Cash and cash equivalents 160,904 143,493 126,648 129,323 113,947 113,950 113,124 102,457 92,280 60,089 Financial Indicators (%)
Operating income to net sales 4.2 2.5 2.4 2.3 2.2 3.7 2.6 1.4 5.3 4.5Ordinary income to net sales 4.0 3.1 3.3 3.1 2.4 3.7 2.5 1.4 5.3 4.8Return on assets (ROA) 0.5 0.7 1.9 2.7 0.5 2.3 1.3 — 7.7 6.5 Return on equity (ROE) 1.9 2.5 6.4 9.1 2.0 7.0 4.3 (2.9) 23.5 20.5Capital adequacy ratio 27.3 30.0 31.4 32.1 26.9 32.7 30.1 33.9 35.3 34.6Shareholders’ Equity (at fiscal year-end) Number of shares issued (Thousands) 187,665 187,665 187,665 187,665 187,665 187,665 187,665 187,665 187,665 187,665Number of employees 41,624 41,509 38,198 32,986 31,883 27,856 27,613 27,078 26,942 24,643
* Despite the existence of latent shares, net income per share after adjustment for latent shares in fiscal 2009 is not stated because of a net loss per share. With regard to diluted net income per share of common stock in 2012, 2013, 2014 and 2015, there were no latent shares with dilutive effects.
■ Profit attributable to owners of parent / Net income to net sales
(Billions of yen)20
15
10
5
02012 2013 2014 20162015
(%)2.0
1.5
1.0
0.5
0
Net income to net sales
0.3
1.5
1.0
0.4
3.2
15.712.6
5.20.3
3.9
(Years ended March 31)■ Return on assets (ROA) / Return on equity (ROE)
(%)10.0
8.0
6.0
4.0
2.0
02012 2013 2014 20162015
ROA ROE
2.0
9.1
6.4
2.5
0.5
2.71.9
0.7
1.9
0.5
(Years ended March 31)
10-Year Financial Summary
63 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 64
Financial Report
Millions of yen
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007Net sales ¥ 1,415,772 ¥ 1,305,502 ¥ 1,218,399 ¥ 1,079,497 ¥ 964,295 ¥ 983,727 ¥ 953,729 ¥ 979,775 ¥ 1,233,789 ¥ 1,082,755Operating income 59,492 32,393 28,823 25,302 20,910 36,856 25,143 14,054 65,596 48,381Ordinary income 56,123 41,091 40,294 33,914 23,225 36,027 24,067 13,292 65,696 52,143Profit attributable to owners of parent 3,900 5,204 12,610 15,792 3,232 11,466 6,882 (5,064) 40,720 30,105Total net assets 243,146 264,038 249,082 220,740 190,347 196,992 196,545 189,038 226,880 197,797Capital stock 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400Total assets 725,895 719,680 659,008 583,955 597,654 504,472 546,486 466,506 527,622 464,747Capital expenditures 36,898 50,190 51,116 36,805 37,583 41,229 43,076 60,496 52,961 47,550Depreciation and amortisation 41,012 40,121 36,302 32,744 31,529 32,342 35,121 31,672 32,940 29,377R&D expenses 38,450 38,821 40,189 36,321 32,543 32,434 30,021 28,968 31,717 26,404
Per Share Data (Yen)
Net income (loss) (Basic) ¥ 21.02 ¥ 28.08 ¥ 68.05 ¥ 85.23 ¥ 17.45 ¥ 61.82 ¥ 37.00 ¥ (27.15) ¥ 217.76 ¥ 160.76Net income (Diluted)* 21.02 — — — — 61.82 37.00 — 217.55 160.70Cash dividends 30.00 18.00 18.00 18.00 16.00 16.00 13.00 20.00 35.00 24.00Net assets 1,065.72 1,164.36 1,115.69 1,010.49 868.93 890.78 883.96 848.01 997.43 858.86Cash Flow
Net cash provided by operating activities ¥ 78,912 ¥ 65,536 ¥ 49,590 ¥ 44,474 ¥ 46,920 ¥ 60,630 ¥ 64,188 ¥ 35,111 ¥ 72,371 ¥ 72,157 Net cash provided by (used in) investing activities (48,086) (51,615) (51,867) 5,826 (76,108) (40,462) (41,337) (67,739) (52,434) (45,948)Net cash provided by (used in) financing activities (8,739) 516 (5,636) (41,942) 30,748 (15,345) (13,547) 47,525 16,053 (5,885)Cash and cash equivalents 160,904 143,493 126,648 129,323 113,947 113,950 113,124 102,457 92,280 60,089 Financial Indicators (%)
Operating income to net sales 4.2 2.5 2.4 2.3 2.2 3.7 2.6 1.4 5.3 4.5Ordinary income to net sales 4.0 3.1 3.3 3.1 2.4 3.7 2.5 1.4 5.3 4.8Return on assets (ROA) 0.5 0.7 1.9 2.7 0.5 2.3 1.3 — 7.7 6.5 Return on equity (ROE) 1.9 2.5 6.4 9.1 2.0 7.0 4.3 (2.9) 23.5 20.5Capital adequacy ratio 27.3 30.0 31.4 32.1 26.9 32.7 30.1 33.9 35.3 34.6Shareholders’ Equity (at fiscal year-end) Number of shares issued (Thousands) 187,665 187,665 187,665 187,665 187,665 187,665 187,665 187,665 187,665 187,665Number of employees 41,624 41,509 38,198 32,986 31,883 27,856 27,613 27,078 26,942 24,643
Years ended March 31
597.6 583.9659.0
719.6 725.8
190.3 220.7 249.0 264.0 243.1
■ Total assets / Total net assets
(Billions of yen)800
600
400
200
02012 2013 2014 20162015
Total assets Total net assets
(Years ended March 31)■ Capital expenditures / Depreciation and amortisation
(Billions of yen)60
40
20
02012 2013 2014 20162015
Capital expenditures Depreciation and amortisation
37.5 36.8
51.1 50.1
36.8
31.5 32.7
36.3 40.1 41.0
(Years ended March 31)
10-Year Financial Summary
65 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 66
As of March 31, 2016
Total Number of Shares
Number of shares authorised to be issued 500,000,000
Number of shares outstanding 187,665,738
(Including treasury stock of 2,047,337)
Number of Shareholders
14,517
Breakdown of Shareholders
Individuals
11.33%
Foreign Corporate Entities
10.45%
Brokerages
0.85%
Treasury Stock
1.09%
Financial Institutions
8.38%
Other Corporate Entities
67.90%
Corporate Data
Location
Capital
Number of employees
Stock exchange listings
Securities code
Independent auditor
Transfer agent
1-1 Toyoda-cho, Kariya-shi, Aichi 448-8651, Japan
8.4 billion yen
8,219 (non-consolidated) 41,624 (consolidated)
Tokyo Stock Exchange and Nagoya Stock Exchange
3116
PricewaterhouseCoopers Aarata LLC
Mitsubishi UFJ Trust and Banking Corporation
Dividends
Based on a stance to maintain stable dividends, the Company’s basic policy is to pay dividends
that meet the various expectations of shareholders upon comprehensively considering such
factors as consolidated business results and the payout ratio. In fiscal 2015, the Company
paid annual cash dividends per share of 30 yen, including an interim dividend of 15 yen and a
year-end dividend of 15 yen.
2015 2016201420132012
(Yen)
16
7
9
18
30
18
915
15
9
99
18
8
10
0
10
20
30
year-endInterim
(Years ended March 31)
Shuhei Toyoda
Yoshimasa Ishii
Shuichi Koyama
Takamichi Taki
Takeshi Numa
Tokuji Yamauchi
Sunao Yamamoto
Teruo Suzuki
Mitsuhisa Kato
Masahiro Morikawa*1
Kazue Sasaki*1
Michio Adachi*1
Shigetoshi Miyoshi
Terukatsu Mizutani
Shinichi Sasaki*2
Hitoshi Yoshida*2
Nobuaki Kato*2
Directors and Auditors
Directors, Audit & Supervisory Board Members and Managing Officers As of June 14, 2016
Executive Managing Officers and Managing Officers
Kohei Hori
Yoshihiro Ito
Yasushi Minami
Masaya Ishii
Masanobu Ishikawa
Osamu Kito
Yasuyuki Izuhara
Toshio Kawasaki
Ikuo Mochizuki
Shinji Kano
Manabu Hachisuka
Hiroshi Ioki
Toshiyuki Kawasaki
Hirokazu Kameno
Hiroki Tsunoda
Kazuo Koide
Ikutomo Sakai
Yasuhiro Fueta
Shouji Adachi
Masamichi Sobajima
Investor Information / Directors, Audit & Supervisory Board Members and Managing Officers
President
Executive Vice Presidents
Directors, Executive Managing Officers
Directors
Standing Audit & Supervisory Board Members
Audit & Supervisory Board Members
Chairman Executive Managing Officers
Managing Officers
*1 Outside Director*2 Outside Audit & Supervisory Board Member
65 TOYOTA BOSHOKU REPORT 2016 TOYOTA BOSHOKU REPORT 2016 66
Third-Party Comments regarding Toyota Boshoku Report 2016
Director, Executive Managing Officer
Teruo Suzuki
Professor
Katsuhiko KokubuGraduate School of Business AdministrationKobe University
Professor Katsuhiko Kokubu completed his Ph.D. in business administration at the Graduate School of Business Administration of Osaka City University and assumed his current position from 2001 after serving as assistant professor at Osaka City University and Kobe University. He is the Convenor of the ISO/TC207/WG8 (working group on material flow cost accounting). His majors are environmental accounting, environmental management and CSR management. Professor Kokubu has published more than 15 books including Low Carbon Supply Chain Management (Chuokeizai-sha, Inc.) and Material Flow Cost Accounting (Nikkei Publishing Inc.). Professor Kokubu serves as the committee chairman and a committee member on various committees of the Ministry of Economy, Trade and Industry and the Ministry of the Environment.
Response to the third-party commentsThe Toyota Boshoku group has started new initiatives in working toward building growth strategies aimed at sustainable growth. This report describes these initiatives and also introduces the newly formulated 2050 Environmental Vision. The social activities reporting section aimed to enhance the disclosure of information more than ever before. Professor Kokubu applauded these points, and based on his comments we will continue to undertake initiatives with a further awareness of being “a trusted company that grows together with all stakeholders.”
We will strive to ensure that Professor Kokubu’s opinion about international goals and guidelines leads to an enhancement of our future CSR activities. At the same time, we will stay closely attuned to the opinions and expectations of society and reaffirm our awareness that “CSR activities are the essence of management” and will further strengthen KPI based on management. I am confident that these efforts will enable the Toyota Boshoku Report itself to become an even more internationally recognised integrated report.
In the future as well, we will listen intently to the opinions of our wide-ranging stakeholders who have given us their support and will make our utmost efforts to achieve sustainable growth.
Activities based on global trends
The year 2015 witnessed important movements internationally with respect to sustainability. At the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21), the Paris Agreement was adopted to address climate change problems and the United Nations announced its Sustainable Development Goals (SDGs) for 2030. In response to the conclusion of the Paris Agreement, the Toyota Boshoku group formulated the 2050 Environmental Vision and has further broken this down into the 2020 Environmental Action Plan. Such activities based on these international trends can be highly acclaimed. Besides only setting mere challenging goals, COP21 similarly emphasises the establishment of specific execution plans for realising these goals. The Toyota Boshoku group has also carefully examined the relationship between its goals and execution plan and I expect it to implement this plan toward the attainment of the goals.
Enhancement of KPIs
Compared with the previous fiscal year, the key performance indicators (KPI) in this year’s report have been noticeably enhanced. I believe the increase in the number of indicators such as for corporate governance and diversity will be highly effective for visualising and improving CSR activities. The strengthening of CSR in the supply chain as well as strengthened safety and major disaster preparedness can be commenced for accurately reflecting recent social needs. In the future, I believe Toyota Boshoku’s international presence will rise if it possesses an awareness of the relationship between CSR activities and the United Nations’ SDGs and tries to incorporate such activities wherever possible. The SDGs consist of 17 goals and 169 targets and I believe that Toyota Boshoku should perhaps begin considering activities that can be linked to these SDGs.
Toward the deployment of CSR-based management
I have heard that from the current fiscal year the Corporate Planning Division will be the division responsible for the Toyota Boshoku group’s CSR. For any company, CSR activities serve as an open window for society. For this reason, I wish to see Toyota Boshoku build a company-wide plan-do-check-act (PDCA) cycle and implement this in a format that can be utilised in its regular business. In particular, I believe the handling of CSR by the Corporate Planning Division is highly significant when considering the creation of social value emphasised by CSR. This year’s report contains interviews with various Group Chiefs in addition to an interview with the President, which shows a strong awareness of collaboration with management. I am hoping to see this trend promoted further in the future.
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2016.3.31
1-1 Toyoda-cho, Kariya-shi, Aichi 448-8651, Japanhttp://www.toyota-boshoku.com/global/
This booklet is printed on FSC™ certified paper using vegetable oil ink and waterless printing for forest and environmental preservation.
Printed in Japan Issue date: August 2016
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